0 1 Find out the cause of the loss. If you find that the fund you bought has been in a downward trend, the first thing you should do at this time is to analyze the reasons for the decline in the net value of the fund. The decline in fund net value can be simply divided into two categories, poor fund quality and poor market conditions:
(1) Poor quality of funds
There are more than 10,000 funds on the market, but not all of them are relatively high-quality funds. In fact, some funds are of poor quality. Even in a bull market, there may be gains that cannot beat the market, and even losses in extreme cases.
In the process of investment, some indicators can be used to judge the quality of the fund, such as: the ratio of return to risk, the full score is 10, the higher the score, the higher the return under the same risk; Excess rate of return, the income that can be obtained after removing market factors.
Of course, the analysis of these indicators requires high professionalism, so we can directly compare them horizontally when analyzing, that is, compare them with the trend of fund net value of the same type of funds and the market index. If the trend is different or even completely opposite, other funds and the market index are rising, and the net value of this fund is not moving or even falling, then the high probability is that the fund investment team is not capable, that is, the decline caused by poor fund quality.
② The market is not good.
In the case of bad market conditions, there are not many funds that can rise against the trend, but there are very few. More fund trends will show a positive correlation with the market conditions. Therefore, if the fund has been falling, there is another situation that the overall market situation is not good, or the fund held by it has already had a very high increase before the heavy position, and now it is in a short-term retracement stage.
It is very simple to judge whether the decline is caused by bad market conditions, just pay attention to the market index. If it is an index fund, you can observe whether the valuation area where the index is located belongs to a high valuation area.
Targeted measures We have analyzed the decline of the two funds, and we can take targeted measures according to the analysis results, so as to turn losses into profits as soon as possible.
① Replace high-quality funds.
If the decline is due to the poor quality of the fund, then the best way is to directly replace the high-quality fund for investment. When choosing a fund, we can first analyze the historical rate of return of the fund manager, the excess rate of return of the fund, the risk-return ratio and other indicators. If it is an index fund, you can look at the tracking error and the current valuation area, and screen out high-quality funds for replacement through a series of indicators.
② Fixed investment of the fund
If it is a loss caused by a bad market, it is recommended to continue to increase positions through fixed investment at this time. If the net value of the fund falls all the way, with the increase of the fixed investment period, we will hold more and more fund shares and the cost of holding positions will be lower and lower.
After patiently waiting for the targeted response from the market, we just need to wait patiently.
If the current market is good, then the replacement of high-quality funds can often bring good return on investment in a better market; If the current market situation is not good, the use of fixed investment will reduce our position cost, and the position share will be more and more, and the market is cyclical. Once the market reverses, the net value of the fund only needs to rise slightly, and we will soon be able to return to our capital. When the net value continues to rise, we will make a profit.
No matter what the market is like, we need to wait patiently and then react.
To sum up: when it is found that the purchased funds have been falling, the first thing to do is to analyze the reasons for the decline. The second step requires us to respond according to the analyzed reasons, and finally we need to wait patiently.