Fund Position Management Tips

A fund's position is the percentage of the money actually invested in the fund to the total amount of money you can use to invest it all. When buying a fund, how much money should you buy? When can you add to your position? When do you need to reduce your position? This is all a matter of position management for the fund. Position management is to try to maximize your investment returns while controlling risk by increasing or decreasing the actual amount of money invested through reasonable arrangements based on your judgment of the market.

market

Position management is a very important issue in investment. A reasonably well-controlled position will allow us to get the desired return when the market is good and not to lose too much when the market is bad. Fund position management is related to many factors, such as personal asset status, investment style preference, psychological risk tolerance, etc. Different investors have different attitudes towards position management.

Of course there will be some unified position management principles, for example, the general principle of position management for index fund fixed investment is: the lower the index the heavier the position, the higher the index the lighter the position. There are many ways to manage the position of the fund, a relatively simple approach is to divide the funds in hand into equal parts of the same amount, generally speaking at least into 10 parts, but also 15, 20 and other parts.

parts

Then set a certain number of fixed investment period to fixed investment, or can also be added to buy a certain percentage of the decline, such as every 3% or index decline of 5% to buy a copy. Set the proportion of different products in the overall assets, do not take up the money that was intended to buy other sectors or indices, which will result in more and more replenishment, a single species accounted for too much, the overall asset ratio is not balanced.

In the process of position management there are two principles that need to be adhered to: first, do not build a one-time position, and second, never fill a full position, leaving yourself some leeway, leaving yourself with sufficient ammunition and enough options

The above is a little advice on fund position management, I hope it will help you.