First, the portfolio is unbalanced.
The investment portfolio of China-Europe medical fund is unbalanced, most of which is concentrated in the stock market, and there is little investment in the bond market. Due to the volatility of the stock market, when the stock market falls, the investment income of China-Europe medical fund will also drop sharply.
Second, the investment risk is too high.
The investment risk of China-Europe medical fund is too high, and most of them are concentrated in the high-risk stock market, while the investment in the bond market is very small. Due to the volatility of the stock market, when the stock market falls, the investment income of China-Europe medical fund will also drop sharply.
Third, improper investment strategy.
The investment strategy of China-Europe medical fund is improper, and most of them are concentrated in the high-risk stock market, but little investment is made in the bond market. Due to the volatility of the stock market, when the stock market falls, the investment income of China-Europe medical fund will also drop sharply.
Fourth, the market environment is unfavorable.
The recent economic situation in Europe is not optimistic, and the external environment has also had a negative impact on the investment income of China-Europe medical fund. As the economic situation in Europe is not optimistic and the stock market falls, the investment income of China-Europe medical fund will also drop sharply.
5. Investors lack confidence
Due to the unbalanced investment portfolio, high investment risk, improper investment strategy and unfavorable market environment, investors have insufficient confidence in China-Europe Medical Fund, which is one of the reasons why its share price has fallen sharply.
Sixth, the regulatory policy is unfavorable.
Recently, European regulators have issued a series of new regulatory policies, which have also had a negative impact on the investment income of China-Europe medical fund. Due to the introduction of the new regulatory policy, the investment income of China-Europe Medical Fund will also be affected, resulting in a sharp drop in its share price.
These are the reasons behind the sharp decline of China-Europe medical fund. Due to the unbalanced investment portfolio, high investment risk, improper investment strategy, unfavorable market environment, insufficient investor confidence and unfavorable regulatory policies, the share price of China-Europe Medical Fund has fallen sharply. Therefore, investors should strengthen their awareness of risk prevention, do a good job in risk control and avoid losses when investing in China-Europe medical fund.