Did the foundation fall during the epidemic? How was the fund market during the epidemic?

We all know that fund investment is a common way of investment. Many people often buy funds, especially those working people with sufficient funds. The outbreak of the new coronavirus has had a certain impact on the capital investment market. So, will the fund fall during the epidemic? Let's take a closer look!

Did the foundation fall during the epidemic?

During the epidemic, some funds rose and some fell. The rise and fall of different funds were different. For specific situations, we need to pay attention to the dynamics of each fund.

This epidemic will have an impact on the net profits of companies in the film and television, catering, tourism, hotel, aviation, airport and other industries in the current year, but these demands will most likely be replenished in the second year.

If the epidemic does not last long, it will not have much impact on currently booming industries such as semiconductors and new energy vehicles.

This epidemic may have certain short-term impacts on the economy and the market, but the duration and magnitude of the impact are limited, so there is no need to worry too much.

Affected by the epidemic, the short-term profit data of some listed companies will fluctuate, which will in turn affect investors' emotions and risk preferences. Short-term trend investors will consider avoiding risks, but for rational long-term investors, short-term event shocks may be a good time to allocate assets.

The epidemic will not change the positive trend of advantageous industries and excellent companies. Corresponding counter-cyclical adjustment policies will be followed up, and the risk-free interest rate is expected to fall further. Therefore, we remain optimistic about the medium- and long-term market trends.

How is the fund market during the epidemic?

Speaking of epidemics, the one that impressed everyone the most should be the SARS in 2003. First, let’s take a brief look at the impact of SARS on the market at that time: During the entire process of SARS, the overall decline of the Shanghai Composite Index was not large, and the epidemic itself did not have a trend impact on the market. It was only during the rapid outbreak of the epidemic that there were periodic fluctuations.

It can be seen that the outbreak of the epidemic will intensify market panic in the short term and cause the market to fall, but it will not affect the overall trend of the market.

Of course, it should be noted that during this epidemic, the number of infected people and the speed of information dissemination are much higher than in 2003, and the traffic control intensity in various places is also much higher than in 2003, so the impact on the economy during the epidemic will also be greater than in 2003.

Of course, we also see many positive factors. In the face of such an emergency, the country has adopted some positive policies to hedge the impact of the event. For example, in terms of monetary policy, on February 2, it was announced that on the first day after the holiday, 1.2 trillion yuan of open market operations would be carried out to inject liquidity. At the same time, we also saw that foreign capital continued to buy in the face of a sharp drop in the market on the first day of opening, with a single-day purchase amount of nearly 20 billion yuan. It continued to buy on February 4 and 6. Fund companies also bought their own equity funds.

Therefore, the short-term impact of the epidemic on the market ultimately depends on the development of the epidemic, the emergence of inflection points, the strength of macroeconomic policies, and the funds of major institutions. As the peak of the epidemic passes and panic eases, the market will also usher in a restorative rise. The panic decline under the epidemic is a good time for us to make arrangements.

What to do if the fund falls during the epidemic

First: When the fund suffers losses, you should have a good attitude

Stay calm and don't sell blindly. Don't be in a hurry to use the money, be patient and don't buy and sell. Before buying funds, make a reasonable plan for the funds in your hands.

Second: See if your method of choosing funds is correct

How did you choose this fund in the first place? Did you get it recommended by an expert friend, did you follow my investment, did you use a specific method to actually choose it, or did you just buy it without knowing anything?

If you choose a fund using your own method and find that the returns are not satisfactory after holding it for a period of time, don't rush to sell it. Observe for a while. After all, buying a fund is not a short-term investment. There is a cycle for ups and downs.

Third: How long do I plan to hold it?

If you don't plan to use the money within three years, don't worry. If the fund is of decent quality, keep buying it. The more it falls, the more you buy. When the market turns around, you will get greater returns.

In short, don't panic when the market falls. Analyze whether it is the overall market change or the problem of this fund.

No matter what investment you make, you should never blindly follow the crowd. Everyone has different funds and cash flows. You must make a reasonable plan before investing. Set aside funds for emergency use, and then divide the rest into short-term, medium-term, and long-term funds, and invest them in different investment targets.

The more money you have, the more planning and asset allocation you need to do. Buffett said not to put all your eggs in one basket, but you can't buy too many in the same basket either, so be moderate.

Don’t change your faith after three days of rising prices, or start doubting your life after three days of falling prices. Investment is all about your mindset.

How to operate funds during the epidemic

The short-term uncertainty brought by the epidemic is still there, and short-term fluctuations in A-shares are inevitable, but the short-term sharp drop caused by uncertainty often brings long-term investment opportunities in the stock market, because China's economic transformation from focusing on quantity to quality will not change, and the trend of healthcare, consumption and technology industries benefiting from China's long-term structural development will not change. As risks are gradually released, investors can buy on dips and focus on the long term. It is recommended to adopt a "two-pronged" strategy in terms of allocation. On the one hand, it is to lay out low-valuation value leaders, including leading companies in industries such as finance, real estate and traditional cyclical manufacturing with low valuations and stable growth; on the other hand, it is "big innovation" in the direction of technological growth, including technology growth stocks led by new energy, 5G and artificial intelligence, such as electronic communications, artificial intelligence, blockchain, big data, cloud computing and other directions.

Given that we are still at an important moment of epidemic prevention and control, the market is likely to fluctuate repeatedly. For investors with light positions, every adjustment in the market may bring new opportunities to enter the market. However, it is still necessary to invest cautiously. You can consider operating the funds in batches and buying on dips to smooth costs and avoid standing on a "high ground". At the same time, you can also adopt a fixed investment method to continue to invest and seize medium- and long-term investment opportunities.