Retail investors can choose to buy some at this time in the early stage of the fund and enjoy the benefits brought by the fund holding to promote the rise of individual stocks. In the medium term of fund holding, they should allocate some stocks with high prosperity, such as rare earth, degradable plastics, non-ferrous resources, fuel cells, some core technologies and stocks upstream of semiconductors. When the fund collapses, retail investors should sell their stocks or continue to wait and see.

In the A-share market, because of the large amount of funds, institutions can't enter and exit as fast as hot money or retail investors, which determines that investors with institutions as the core can only increase their positions in a certain sector, constantly create a money-making effect and continuously attract more capital inflows. Finally, the constant circulation leads to the clustering of institutions in this sector, forming a group market.

When the institutional rebound pushes the stocks to a certain height, some institutions will sell their stocks, which will lead to the stock price falling, and then induce other institutions in the market to follow suit, leading to the collapse of institutions and individual stocks.