When the fund falls, everyone will always want to earn it back, but some investors will lose more and more, and some investors will earn it back. Although the future ups and downs of the fund are unpredictable, some investors who learn about the fund and understand the fund will reduce the possibility of losses. So is it difficult to recover the fund after falling? How much should the fund rise to return to its original value when it falls by 25%? I have prepared relevant contents for your reference.
is it difficult to return the fund when it falls? The difficulty of the fund's recovery is related to the extent of the decline. Some funds have fallen by 2%, some by 5% and some by 2%. The degree of the fund's decline is different, and the difficulty of recovery will be different. Generally speaking, if the fund falls less, the possibility of returning to its capital is relatively large, and if the fund falls more, it will be more difficult for the fund to return to its capital. For example, if the fund falls by 5% and the fund falls by 2%, the difficulty of returning to its capital is different, and if it falls by 2%, it will be more difficult to return to its capital.
if the fund falls by 25%, how much should it rise before it returns to its capital? Only when the fund falls by 25% and rises by 33% can it return to its original value. The calculation formula of rising cost recovery is: rising cost recovery range =1/(1- loss range) -1. Let's take a simple example: suppose that an investor bought a pharmaceutical fund, but the fund continued to decline because the fund market was not very good, and the investor just bought it at a high point when buying it, so there was a loss of 25%. Then, if it is calculated by substituting the company, the increase rate will be 1/(1-25%)-1 = 33%, so the fund needs 33%.