When buying a fund, some novice investors don't know much about the knowledge of the fund, and they are afraid that the fund will lose all its money and pay back the money. So what happens if the money in the fund runs out? Will it continue to lose money?

Will the fund continue to lose money after losing its principal?

After the fund loses its principal, it may continue to lose money. Generally, this situation will directly lead to the liquidation of the fund.

But under normal circumstances, funds are long-term investments, and it is unlikely that they will continue to fall. If so, the fund manager will make a new allocation of the fund to achieve a stop loss situation, or wait for the next round of market recovery.

Therefore, the fund also needs to master certain investment skills in the process of investment. When the fund loses money to the stop loss point, you can consider redeeming the stop loss. Don't let the fund keep losing money. Stop loss in time, don't be reluctant, or thanks to one day, buy funds rationally.

Don't try to add positions as soon as the fund loses money. If you have this idea, you may lose more and more. The same is true when the fund is profitable to a certain extent. Need to set the take profit point, such as 5%, 10%, 15%, 20% and so on. When the fund earns the stop profit point, it can consider redeeming the stop profit.

Generally, when the fund falls, we should first analyze the reasons for the decline, and then consider whether to hold or redeem it. If the market falls, most funds are falling, and the fund itself is fine, but the fund market is not good. If it has fallen for a while, then when the fund rebounds, we can choose to wait for the return, or add positions to accelerate redemption, but adding positions will also increase risks, so be cautious.