Under the massive counterattack in the stock market, the fund market has also ushered in a warm spring. The Christians, who were once wailing, became more cheerful and smiling. However, there are still many Christians who cannot laugh. Although the market is picking up, many funds have not risen much. Why is this?
Why doesn’t my fund rise after the market picks up?
First of all, maybe it just failed to hit the hot spot. When the market picks up, not all funds rise together. Every time the market picks up, most of the time there are at least one or two leading sectors, and these are popular tracks.
Because in the early stage of market recovery, most investors have insufficient confidence in the market and are not very enthusiastic about investing. Therefore, the main funds can only concentrate on a few sectors to drive the money-making effect of the market in order to attract investors. More investors enter the market.
Only when most investors begin to enter the market, will the market be able to usher in a general rise.
Therefore, funds in popular tracks not only rise faster than other funds, but also tend to rise much larger. On the contrary, those funds that are in the unpopular track may not be able to keep up with the market after the market picks up due to lack of funds.
Secondly, it may be that the fund itself has little to do with the recovering market. Different funds may invest in different markets. For example, bond funds mainly invest in the bond market, stock funds mainly invest in the stock market, and QDII mainly invest in overseas markets.
Each market has its own characteristics. They may be related to each other, but they may not be related, or even the opposite situation may occur.
For example, when A shares are rising, European and American stock markets are falling. So if you buy QDII fund , then the market recovery has nothing to do with you, and even the fund you bought is still losing money.
Again, it may be that the fund manager’s ability is not good enough. For active funds , whether it will rise or not, or whether it will rise more or less, is mainly related to two factors, one is the market situation, and the other is the investment ability of the fund manager.
Therefore, market recovery is only one of the conditions for the fund to rise. If the fund manager's ability is not good, even if the market recovers, he may not be able to make money for the funds he manages.
So, if your fund does not rise when the market picks up, should you sell it and replace it?
Should funds that rise slowly as the market recovers be replaced?
First of all, if you just fail to hit the popular track, you don’t necessarily need to change funds. On the one hand, if the market has fully recovered, even funds that are not on the popular track will have opportunities. And with the rotation of hot spots, these tracks may also become hot spots.
On the other hand, if the market does not fully recover, then giving up the current track and chasing popular tracks may face greater risks. Because when the market has not fully recovered, popular tracks tend to ebb and flow quickly. By the time you catch up, the ebb may begin to ebb.
Secondly, if it is because you have not invested in the right market, whether you want to change or not depends on the market situation. If one market has fallen a lot and the other market has risen a lot, there is little need to change funds at this time.
On the contrary, if both markets are in the early stages of decline and rise, you can replace the fund with a bad market into a fund with a good market.
Again, for funds whose fund managers are not good, they must be replaced, even if they are losing money. Because continues to be consumed here, it will not only waste time, but also miss good opportunities to make money. It is really unnecessary and cost-effective.
So, have the funds in your hands outperformed the market when the market picked up?
