Can the fund return to its original value after falling by 20%?
Whether the fund can recover its capital after a 20% decline depends on the situation. If the fund's follow-up market is good and the increase is relatively high, it is possible to recover the capital. However, if the fund's follow-up market is not good and then falls, investors will not redeem it, so the loss will be heavier.
Therefore, when the fund loses 20%, it is necessary to analyze the reasons for the fund's loss, depending on whether it is the fund's own reasons. For example, if the fund manager is incompetent, then redeem the fund, because the follow-up fund may fall.
If it is not because of the fund itself, but because the fund market is relatively poor, most funds are falling, and they have been falling for some time. If the fund is at a relatively low level and there are signs of rebound, investors are more optimistic about the fund, and they can speed up the withdrawal of funds by adding positions.
The fund lost 20%. How much has it recovered?
The fund lost 20% and returned 25%. The calculation formula of rising cost recovery is: rising cost recovery interval =1(1-loss interval)-1, that is, when investors lose 20%, rising cost recovery interval =1(1-20%)-6544.
If investors want to speed up the return of funds, they can increase their positions when the fund falls, which can speed up the return of funds, but increasing their positions will aggravate the risks. If the fund continues to fall, it may lose more.
Therefore, after the fund loses money, it is necessary to analyze the reasons for the fund's loss and then consider whether to increase the position. If you can't take risks, it is generally not recommended to add positions. It is recommended to redeem the fund. If investors are very optimistic about this fund, but have no money to add positions, they can consider holding positions and waiting for the fund to rise and earn back.