The maximum withdrawal of a fund is a risk indicator in the process of fund management, which refers to the extent to which the price or net value of a fund has dropped from the highest point to the lowest point in the past period of time. The rise and fall of the stock market is unpredictable, and the net value of funds investing in stocks is also facing unpredictable daily fluctuations. Retreat is inevitable in the short term.

each fund manager has different investment styles and different ways to deal with retracement. Fund managers who are good at market environment and macro timing can adjust and reduce positions in time, and control the net value of funds to fluctuate within a relatively small range to avoid a sharp drop in net value. Importance of fund withdrawal index

Investors usually pay attention to returns and ignore risks, and pay attention to the return rate of funds in the short term, which is not comprehensive. If the withdrawal rate of investment funds suddenly increases, investors will bear high losses. For example, two investment funds with an average annual return of 1%, one of which has a maximum withdrawal rate of 5% and a maximum return rate of 1%, and the other has a maximum withdrawal rate of 2% and a maximum withdrawal rate of 15%.

when investing, investors can't accurately judge whether the fund is at a high point or a low point when buying, so they should be prepared to bear the biggest withdrawal loss.

the core of choosing a fund is to choose a fund manager to see if the investment philosophy of the fund manager is in line with personal preferences. Some fund managers are good at making long-term investments, and do not frequently buy and sell according to the ups and downs of the market. Although the net value will drop sharply, the rebound ability after the decline is strong, which can also bring high returns to investors.

Therefore, investors should pay attention to the performance of fund managers in the past few years. From the perspective of fund net value, the ability of risk control is an important factor to ensure the steady rise of portfolio net value. If the funds managed by the fund manager for three years or more are stable, it shows that he has the ability to reduce risks and achieve stable returns. Aspects that should be paid attention to when using the withdrawal index

First of all, the withdrawal rate should be based on the data as long as possible. For funds with active management, at least the maximum withdrawal in three to five years should be considered. Because the management ability of the investment manager is continuous, the short-term retracement performance cannot cover the long-term performance. When judging the maximum withdrawal rate, it should be combined with the market performance in the historical period. Under the negative market situation, it is normal for the fund to increase the withdrawal rate, so investors should treat and use the withdrawal rate index rationally.

Secondly, there is no comparability between the withdrawal rate indicators of bond funds and stock funds. Investors should judge the management ability of fund managers through the withdrawal rate indicators among the same types of funds according to their own risk preferences.

Finally, for investors who pursue high risks and high returns, the maximum withdrawal rate index is not very referential. Investors can choose other indicators to invest, and the maximum withdrawal rate is more suitable for small and medium-sized investors to use and analyze. Advice to investors

The fluctuation of fund net value is normal. Since investors choose investment funds, it is totally unnecessary to do so frequently? Throw high and suck low? The probability of making a correct short-term transaction is not high, and the income is low and the potential loss is high, so it is easy to lose more than the gain, and it is also necessary to bear additional expenses such as subscription and redemption.

Every fund manager has a different investment style. It is not comprehensive to measure the quality of a product only by the maximum withdrawal of the fund. Investors should also judge it according to the return rate of the fund. The greater the ratio of yield to withdrawal rate, the stronger the profitability of fund managers.

investment funds should pay more attention to the long-term trend rather than the short-term return of a certain point. The withdrawal of stocks is not a real risk. As long as there is relevant performance support, high returns can always be achieved, and the ups and downs can make it more stable and further.

to sum up, the withdrawal rate of funds is generally proportional to the risk, and the greater the withdrawal, the greater the risk, and the smaller the withdrawal, the less the risk. Does the average withdrawal rate reflect the fund's Stability? The maximum retracement rate indicates the highest risk value of the fund's past performance.

The fund withdrawal rate can reflect the fund manager's ability to control risks and master market trends. For non-risk preference investors, the smaller the maximum withdrawal, the better.