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How to treat the P/E ratio and maximum retracement of funds?
Generally, there are two ways to query the maximum withdrawal amount:

1. You can view the fund directly on your own software. Take Alipay as an example, as shown in the figure:

When you open the fund you bought, you can see the maximum withdrawal of the fund. The fund is a stock fund, and there is no P/E ratio to see. Only index funds can see the P/E ratio. The P/E ratio of index funds can be viewed in the following functions: the undervaluation list of Tian Tian Fund Network, Alipay traffic lights and so on.

2. See the maximum withdrawal of funds. You can also log in to official website, a fund company, and search for the name of the fund you bought.

Simply put, the maximum withdrawal of funds refers to the fluctuation range between the highest point and the lowest point of the net value of funds in a period of time. In other words, suppose that investors are unfortunate enough to buy at the highest point, what is the biggest loss? For example, the maximum retracement is 10%, which means that investors lose the most after buying at a high level 10%.

The lower the PE(PB) percentile of the fund, the more suitable it is to buy; The higher the percentage of PE(PB), the more suitable it is to sell. Generally, the percentage below 30% is defined as undervaluation, and the percentage above 70% is defined as overvaluation.

Operating environment of the above steps:

Mobile phone model: Xiaomi 12

System version: MIUI 13

Alipay version number. : 10.2.70