In the face of net value fluctuation, there is no need to throw high and suck low frequently, and the probability of being able to step on the right rhythm is not high. The continuous sharp rise of funds is not the normal state of investment. After the skyrocketing, after adjustment and finishing, we can go more steadily and further.
Risks and benefits always appear together. While enjoying the benefits, we should also be prepared to endure the retreat. In recent 15 years, the maximum retracement of Shanghai Composite Index 1 1 year exceeded 15%, and only the retracement in 20 14 years and 20 17 years was within 10%. However, the maximum retracement of stock fund index at 14 exceeds 10%, and only at 20 17 is the maximum retracement within 10%.
If you are not ready to leave, you should be prepared to suddenly retreat to 10% or even 15%, even in a big bull market.
This is mainly a horizontal comparison, on the one hand, it is compared with the broader market, such as the Shanghai Composite Index and the Shanghai and Shenzhen 300, on the other hand, it is compared with similar funds.
If the maximum withdrawal of your fund reaches 20% this year, the maximum withdrawal of the Shanghai Composite Index this year is only 14.62%, and the Shanghai and Shenzhen 300 Index is 16.08%. Then the risk of this fund is still quite large.
Compared with similar funds, the maximum withdrawal is smaller, indicating that fund managers are more cautious and have better risk control ability. For most people, keeping the principal and reducing losses will be one of the important rules on the investment road.
However, it should be noted that the retracement is not a loss, and the maximum retracement is not as small as possible.
Simply put, just calm down, it doesn't matter, give him some time and let the bullet fly for a while.
In addition, for long-term holding funds with good performance, retracement is the opportunity to add positions. If you are not sure, you can also add positions in batches or fixed investment.