How do funds bargain-hunting? The skill of fund bargain hunting?

In the stock market, we often talk about bargain hunting. Then, for the fund, can it also be bargain-hunting? What should the fund do?

When you want to bargain-hunt a fund, you must first know whether this fund can bargain-hunt now. What is the standard of judgment?

The maximum withdrawal rate of the fund refers to the maximum loss that may occur in a period of time. If you want to bargain-hunt a fund, you might as well look at this indicator before you bargain-hunt, and see what the maximum withdrawal rate of this fund is in the past three or five years.

For example, if the maximum withdrawal rate of a fund in the past three years is 30%, then the fund has fallen by 25% in the same period, which is close to the maximum withdrawal rate. If the maximum withdrawal rate continues to drop by more than 30%, you can use appropriate positions to bargain-hunting, and continue to observe the follow-up market to decide whether to make up the position.

Using the valuation of funds, fund investment is a long-term investment method. As long as the fund has investment value in essence and falls to the right position in a short period of time, it can bargain-hunting. We can judge the valuation by the corresponding index P/E ratio or quantile in the performance benchmark of the fund. For example, if a liquor fund refers to the CSI liquor index, we will look at the current valuation of the CSI liquor index and bargain-hunting when it is undervalued.

There is no perfect bargain-hunting in the market. Don't think that in a market cycle, you can buy the lowest point and step out all the benefits. We can use some methods to help judge the appropriate bargain-hunting position, and then operate step by step.

Because the market is changing, there may be some extreme situations. Don't bargain-hunting with a poker mentality, and don't think that you will get good returns in the short term after bargain-hunting. It takes time for the market to repair the rebound.