First of all, I think the answer is yes. Investment funds definitely need to stop their profits and losses, especially their profits. Like the stock, the one who can buy is the apprentice and the one who will sell is the master.
First of all, why should we stop the profit?
We all know that the purpose of buying a fund is to make a profit, which is no different from stocks. The only difference is that the fund tends to be long-term, and few people do T in the fund. Since the goal is to make a profit, that is, the difference between selling and buying, when the fund makes money, we certainly have to consider keeping it safe. We cannot expect the fund to go up all the time. Especially stock funds, this is actually the same as stocks. We always have a profit-stopping condition before we buy it. In the stock market, Buffett talked about the three conditions for selling: the stock price has risen to the target price valuation is no longer cheap, with a better target, the fundamentals have deteriorated. These three points are equally applicable to funds, and you can also refer to this to buy funds, especially stock funds.
Therefore, I think the fund must consider stopping profits, otherwise, even if the fund you hold rises 10 times and does not sell, it is just a number, and it has never been found that a fund can rise all the time. Many funds may have gone up several times and then fell back. In addition, I think we can refer to the following two points for the methods of stopping profits of the fund:
1. The funds held are no longer cheap.
For example, index funds, for example, I am familiar with, Shanghai A50, for example, from more than 10 years of history, 4100 points is the highest, 3500 points belong to the ratio.