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Will the loss of fund principal be deducted?
In recent years, investment funds have become one of the choices of more and more people. Although many people know that fund investment is risky, there are still many people who have to choose this path for various reasons. The most common situation is the loss of fund principal, and many people will worry about whether they will continue to deduct money after the loss of fund principal. Then, will the principal of the fund be deducted after the loss? The answer is: it depends on the specific situation.

First of all, the loss of the fund is inevitable, because the fund investment is not only affected by market fluctuations, but also by economic, political, natural and other factors. No matter how powerful the fund manager is, there is no guarantee that 100% will not lose money. Therefore, the loss of fund principal is very common. However, even if the fund loses money, whether it will continue to deduct money depends on the specific fund type. In general funds, there are generally two kinds of management fees and fund sales service fees. The management fee is the management fee for the fund management company, which needs to be charged regardless of whether there is any loss in fund investment. The fund sales service fee is charged by the sales organization, which is usually a certain proportion of the net fund share (not exceeding 1.5%). If the net value becomes smaller after the loss, the sales service fee will naturally decrease.

Secondly, if it is a money fund, there is no problem of deducting the principal of the fund after the loss. Because the money fund itself is a fund with the goal of capital preservation, there is usually no loss of principal. At the same time, the income of the money fund is relatively low, which is basically the same as that of bank wealth management and demand deposits, and the yield can almost be maintained at around 3%. Therefore, for investors with low risk tolerance, the money fund is a relatively safe choice.

Finally, even equity funds or hybrid funds will not simply continue to deduct money after the fund's principal loss. This also depends on the specific fund terms. In most cases, the fund company stipulates the risk tolerance and operation mode of the fund, as well as the responsibilities and obligations of the fund manager in the fund terms. If it is agreed in the terms of the fund that no sales service fee or management fee will be charged if the net value is below a certain standard, then the money will not be deducted after the loss of the fund principal.

In short, whether the fund will continue to deduct money after the principal loss depends on the specific fund type and fund terms. When choosing an investment fund, we should not only consider the rate of return, but also understand the information of the fund, choose the investment target that suits us and reduce the investment risk.