Extended knowledge
According to the regulations of the market, once the principal of the fund investor is lost, the fund manager will announce the liquidation of the fund and will not continue to deduct money. Under normal circumstances, there will be no loss of fund principal, because according to risk control management, if the net value of the fund continues to decline, the fund manager will start risk control and take appropriate measures, such as fund suspension, to stop losses.
When the fund loses its principal, it loses all the funds of the investment. The fund loses the principal at most, so it will not continue to lose money after losing the principal. Generally speaking, the probability of a fund losing its principal is very small. First of all, the fund invests in a basket of stocks, and the rise and fall of the fund is determined by this basket of stocks, and the probability of losses in this basket of stocks is extremely small. Secondly, poor fund performance will lead to fund liquidation, and the remaining assets after fund liquidation will be distributed to investors according to the share held by investors.