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What are the indicators for buying funds to cover positions?
What are the indicators for buying funds to cover positions?

What indicators to buy funds to cover positions, you need to consult relevant information to get the answer. According to many years' study experience, if we figure out what indicators to buy funds to cover positions, we can get twice the result with half the effort. Here, I'd like to share some experiences on how to buy funds to cover positions for your reference.

What are the indicators for buying funds to cover positions?

The following indicators can be used to cover fund positions:

1. benchmark rate of return on performance: the benchmark rate of return on performance of the Fund is for reference. If the fund's rate of return is higher than the benchmark rate of return, it means that the fund's performance is good and there is no need to make up the position. If the fund's rate of return is lower than the benchmark rate of return, it means that the fund's performance is not good, and it can make up the position appropriately.

2. Fund manager: The fund manager is the core of the fund, and a good fund manager can bring good benefits to the fund. We can judge whether it is necessary to cover positions by looking at the historical performance of fund managers.

3. Fund size: Fund size has a certain impact on the performance of the fund. If the fund is too large, it may lead to insufficient funds and unable to obtain high returns. If the scale of the fund is too small, it may lead to too scattered funds and unable to obtain stable income. Therefore, it is necessary to judge whether it is necessary to make up the position according to the size of the fund.

4. Fund type: Different types of funds have different risk-return characteristics, so it is necessary to judge whether it is necessary to make up the position according to the fund type. For example, equity funds have higher risks but higher returns; Bond funds have lower risks, but also lower returns. Therefore, it is necessary to choose whether to make up the position according to personal risk tolerance.

The coverage position of the fund has decreased by 20%

Fund covering position refers to the act of buying the same fund before the end of the next quarter. According to the regulations on holding funds, the longer you hold funds, the more tax benefits you enjoy. However, if the fund you buy falls by 20%, it may lead to your investment failure. If the fund you bought really fell by 20%, you can consider suspending the plan of covering positions and reassessing the market trend for a period of time. If the market trend is still unsatisfactory, you can consider re-planning your investment portfolio. If you choose to continue to make up the position, it is recommended to control the position appropriately so as not to affect the investment income.

How does the fund 48 cover the position method operate?

Fund 48 replenishment method is an investment method to reduce costs through regular quota replenishment. This method is suitable for investors who think that the future prospects of the funds they buy at present are uncertain and hope to avoid risks by gradually reducing costs.

The specific operation steps are as follows:

1. Set a fixed time interval, such as weekly or monthly.

2. At each replenishment, calculate the unit cost of the fund according to the current net value of the fund and the net value of the last replenishment.

3. Calculate the difference between the current fund net value and the last net value, that is, the loss amount.

4. If the loss amount is less than or equal to a certain threshold, make up the position, that is, buy a certain number of fund units according to the current net fund value.

5. After the replenishment is completed, continue to wait for the next replenishment interval and follow the same steps for the next replenishment operation.

It should be noted that the fund 48 covering position method is only applicable to the falling market. If the market trend has reversed, this method is not applicable. In addition, investors need to decide when to stop covering positions according to their risk tolerance and investment objectives.

How long can the fund cover the position?

How long the fund can be sold to cover the position mainly depends on the type of fund you invest in:

1. Closed-end fund: closed-end funds cannot be withdrawn during the closed period, and can only be sold after the closed period, regardless of profit or loss.

2. Open-end funds: Investors can buy and sell funds on any trading day. However, the funds bought with the funds for covering positions and the cash sold can only be used to buy new funds, not to sell old funds.

3. Index funds, industry funds and ETF funds: suitable for long-term holding and generally not paying dividends.

4. Monetary Fund: deposit, current deposit, which can be withdrawn at any time. Redemption funds will be received in real time without interest.

5. Bond fund: It can be sold at any time, but the redemption fee needs to be deducted.

6. Equity funds: suitable for long-term investment. Investors are not advised to hold stock funds for a short period of time, unless they have to, because short-term fluctuations are large, and stamp duty is also paid.

Before investors make up their positions, it is best to analyze the market situation of the fund before making a decision.

Fund band operation to cover positions

The fund band operation covering position refers to buying when the fund falls, hoping to return the fund price to a higher level through buying. This strategy can cover the position when the fund's net value falls, dilute the cost and sell it when the fund's net value rises to a certain extent, thus earning the difference.

Pay attention to the following points when covering positions in fund band operation:

1. Determine investment objectives and risk tolerance: Before making any investment, you need to make clear your investment objectives and risk tolerance. Band operation is a high-risk investment strategy, which requires investors to have high risk tolerance.

2. Choose the right fund: before the band operation makes up the position, you need to choose the fund that suits you. You can consider choosing a fund with stable historical performance and experienced fund managers.

3. Control positions: When covering positions in band operation, you need to pay attention to control positions, and don't put all the funds into it. Reasonable position control can reduce risks.

4. Stop-loss and profit-taking: Stop-loss and profit-taking points need to be set when covering positions in band operation. Once the fund price falls below the stop loss point, it needs to be sold in time to avoid further losses.

5. Evaluate the investment performance regularly: After the band operation makes up the position, it is necessary to evaluate the investment performance regularly to see whether the expected goal has been achieved. If the goal is not achieved, the strategy needs to be adjusted in time.

Buy funds to cover positions and see what indicators are introduced here.