After buying a fund, it is necessary to observe and analyze its trend and market. Many people are confused about the callback and decline. They always think that the callback is a decline, but it is not entirely true. So what is the difference between fund callback and decline?

Is the fund callback a decline?

Capital callback is a decline, but it is not the same as the real decline, because callback refers to the phenomenon that the price temporarily falls because of the rising speed and the seller's suppression in the price rising trend. The decline may be a decline after a rise, a decline after a sideways move, or a decline after a decline. After the callback, it will resume the original upward trend, but the decline is not necessarily, and it may continue to fall.

The same as the decline in the fund callback, the net value of the fund has decreased. Investors usually have two choices, the first is to redeem in whole or in part, and the second is to continue holding, but this should be chosen according to the individual's risk tolerance. Generally, if it is determined that it is only a callback, redemption is not recommended, because the recovery of the rise is not far away. If it is determined that it is a decline and the subsequent trend is unknown, you can choose to stop the loss in time.

The above is the answer to the question whether the fund callback belongs to the decline. You will understand after reading it. Whether it is a callback or a decline, it is a very important signal and needs to be analyzed in time.