In fact, the fund's investment market is not optimistic this year. Many investors said that the funds they invested in fell all the way and suffered a lot of losses. Most funds are at a loss. So when the fund's market drops, is it possible for the fund to fall to 0 yuan? Let's get to know each other.

Did the foundation fall to 0 yuan?

Basically, no matter how the fund falls, it is unlikely to fall to 0 yuan. In other words, the price of any fund is unlikely to fall to 0 yuan. In fact, when raising funds, it is often clearly stipulated in the prospectus that the fund will decline, that is, when the loss ratio of the fund reaches a certain level, it will be liquidated, so the fund may be liquidated, but it is unlikely to fall to 0 yuan. Because the fund has not fallen to 0 yuan, it will trigger the fund prospectus to stipulate the proportion of decline, leading to the liquidation of the fund.

Fund liquidation is to realize the assets of the fund and distribute the income to the holders in proportion. Since the fund itself does not use leverage, the probability of falling to zero is very low. At the time of liquidation, the fund manager will realize the fund assets and distribute the income according to the proportion of the holders' shares. This will help protect the interests of investors and prevent the fund from further losses.

Usually active funds usually allow investors to redeem fund shares. Therefore, when the fund loses money to a certain extent, most investors will directly redeem the fund now to avoid further losses.

For investors, in order to avoid irreparable losses caused by the decline of the fund, you can set the corresponding fund stop-loss point according to your risk tolerance. When the fund reaches the stop-loss point, it will automatically redeem the fund.