Fund crash means that the net value of the fund has fallen sharply in a short period of time, with a drop of more than 20%, resulting in heavy losses for investors. This plunge is usually caused by changes in the market environment, fund managers' operational mistakes, policy risks and other reasons.

During the collapse of the fund, investors may face the risk that the funds are trapped and cannot be redeemed, and may even cause investors to lose confidence and give up investment. Therefore, investors should fully understand the risk-return characteristics and investment strategies of funds when choosing funds, and avoid blindly following the trend and investing rationally.