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The fund fell by 50% and rose by 50%. Can it return to its original value?
When buying a fund, some investors are not particularly familiar with the ups and downs of the fund, so there will be doubts. For example, can a fund return to its original value if it falls by 50% and then rises by 50%? Why did the fund return to its original value after falling by 50% and rising by 100%? We have prepared relevant contents for your reference.

If the fund falls by 50% and rises by 50%, it will not be able to return to its original value. If the fund falls by 50%, it will have to rise by 100% to recover its capital, because the formula for calculating the rising capital is: rising capital interval =1(1-loss interval)-1.

Let's give a simple example: suppose an investor bought a stock fund, but because the market is not very good, the fund keeps falling, and the investor just bought it at a high point, so there is a 50% loss. Then, if it is substituted into the company's calculation, the increase is = 1/( 1-50%)-6544.

In fact, when the fund loses 50%, it belongs to a fund with serious losses. First of all, we should analyze the reasons for the fund's loss and see if the fund has investment value. If not, you must redeem it in time and keep the remaining funds.

When buying a fund, it is very important to set a stop loss point. Some investors just want to make more money by buying funds. Then, when the fund reaches a certain high level, the fund fails to take profits in time and the fund loses money. They always want to wait to earn back, but the more the fund loses, the more it will be redeemed when there is little left, which is not worth the candle.

Generally, when setting a stop loss point, it can be considered to be between 15%-20%. When the fund loses money to this point, it will be redeemed in time and wait for the right time to enter the market.