The fund has lost 50%. Can it get its principal back?
1. Return on capital: If the market reverses, the value of the fund begins to rise, and it may return to the original principal level after a period of time.
2. Further losses: If the market continues to fall, continuing to insist may lead to further losses. The market may sometimes experience a long-term downward cycle, which may cause your investment to shrink further.
3. Permanent loss: In some cases, the market may not be able to return to the original principal level, especially if the assets invested by your fund have suffered long-term depreciation or other irreversible losses.
In the fund market, all three situations are possible. However, different investors have different risk-taking abilities, and natural selection coping styles are also different, depending on the actual situation.
How can a fund with a loss of more than 50% return its capital as soon as possible?
1, the boldest way is to make up the position. Low positions can reduce the holding cost. The more you make up, the lower the cost. If you can make up a lot of positions, as long as the fund rebounds slightly, you may be able to return to the capital.
2, and the smarter way is to keep the bottom warehouse still, and then take out a sum of money to do high throwing and low sucking. Although this method is clever, only smart people can use it well.
As for the stupidest way, it is to hold the fund all the time, but change the dividend method into dividend reinvestment. Because at this time, if you still use the default cash dividend, it will be even harder to get it back.
The above are some contents of fund losses, so you can pay attention to them.