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Why do funds lose more money than stocks?
Some investors buy funds and feel that they are losing more than stocks when they encounter bad market conditions. So why do funds lose more money than stocks? What is the reason? We have prepared relevant contents for your reference.

The reason why general funds lose more than stocks is because the fund's heavy stocks have fallen sharply. Ordinary stocks are up or down by 10%. If the market is good, stocks will rise, and the increase will be relatively large.

However, some funds invest in more than one stock, which disperses the risk to some extent. However, if there is a collective decline in heavy stocks, it may be worse than the stock loss. For example, some equity funds or QDII funds may drop by 8% or more a day when the decline is relatively large.

Some investors will think that funds lose more than stocks, mainly by comparing stocks and funds individually. For example, the stocks that have just been compared are on the rise, that is, the stocks will make money, and the awkward stocks that the fund has just invested collectively fall, so the fund's decline is relatively large, so there will be this feeling.

In fact, the nature of fund loss is similar to that of stock loss, except that the stock belongs to a single stock and the fund belongs to multiple stocks invested. However, it should be noted that all the funds mentioned above have invested in stocks, while funds that have not invested in stocks, such as money funds or pure debt funds, will not fall as much as stocks and have less relative risks.