Fund refers to a financial management method in which the raised funds are managed by professional fund managers, and the income and risk are relatively balanced. So the foundation won't lose all its principal? How to increase fund income? The following is analyzed by Xi Cai Jun:

The foundation won't lose all its principal?

Generally speaking, the fund will not lose all its funds. If the net value of the fund continues to fall, then the fund will lose money, but when the net value of the fund falls to a certain extent, it will be liquidated. If the fund is liquidated, the fund company will convert it into cash according to the net value of the fund and return it to the investors, so the fund will not lose all the principal.

In other words, the fund will be liquidated after reaching the prescribed liquidation line. For example, the closing line of a fund is 0.3 yuan, and when the net value of the fund falls to 0.3 yuan, it begins to close the position.

How to increase fund income?

1, choose the appropriate fund investment.

According to your investment preference (risk tolerance), choose the right fund investment and analyze what type of investor you belong to. If you are a steady investor, you can choose money funds and bond funds. If you are an aggressive investor, you can choose a stock fund.

2. Long-term holding

Fund is a kind of wealth management product suitable for long-term holding. It invests in a basket of stocks, and the stock market is short-lived and long-lived, so it is easier to get considerable benefits from long-term holding.

3. Make a fixed investment in the fund

Fixed investment is also a stable investment method suitable for novices. It means to invest a certain amount of money into the designated open-end fund at a fixed time, increase the holding share and reduce the cost through continuous investment, and exchange time for income to realize the smile curve effect.

4. Diversified portfolio investment

Combining different fund types with little correlation, such as stock funds with bond funds and monetary funds, can pursue higher returns on the premise of ensuring basic returns.

5. Adjust the investment strategy regularly.

There may be some changes in the fund market, and investors need to analyze and adjust their investment portfolio in time to adapt to the changes in the market.