The fund is a risky investment. When the market is bad, the principal may suffer serious losses, so everyone needs to be cautious when buying. Then, if the fund loses 50%, can it return the principal? Is it difficult to earn back 50% of the fund's losses? We have prepared relevant contents for your reference.

The fund has lost 50%. Can it get its principal back?

If the fund loses 50%, it can return the principal. If investors are optimistic about the fund, they can increase their positions when the fund falls. Adding positions means buying funds. Adding positions when the fund goes down can reduce the cost of buying, and when the fund goes up, they can earn it back quickly.

But adding positions will increase the risk of the fund. When the market is bad, if the fund continues to fall, it may lose money by adding positions, so you must be very cautious when adding positions, unless you are particularly optimistic about the fund. If you are not optimistic, it is generally not recommended to add positions.

Is it difficult to earn back 50% of the fund's losses?

If the fund loses 50%, it will be difficult to earn it back, because the fund has already lost 50%. If it returns to its capital, it needs to add more to return to its capital. The formula for increasing its capital is: increase its capital =1(1-loss range)-1, that is, when the investor loses 50%, it will rise again.

Then, if a fund wants to grow 100%, it will be very difficult in a short time. Some funds have a good market, only rising by 100% a year. However, if the fund is in a bad market, it may continue to lose money. It is necessary to judge whether the fund is likely to rebound. If not, it would be better to stop in time.