Fund retracement means that when the market risk increases or the net value of fund products falls seriously, the maximum value of fund product income retracement is pushed back from any time node in an investment cycle. The maximum withdrawal rate of funds is a risk index that can measure the performance of fund products better than the rate of return and volatility, reflecting the performance of funds in the worst case.

The biggest withdrawal of funds generally occurs when there is big negative information in the market or the investment target is single. The negative attitude of investors towards the market outlook of fund products will lead to a large number of redemptions, thus greatly improving the rate of fund withdrawal. In addition, fluctuations in the general market environment or the decline in the performance of listed companies will also lead to the withdrawal of fund products, but the extent will not be too great.

A huge retracement caused by major negative news of a single target. The investment target of a fund generally covers more than a dozen stocks in multiple industries. If one of the investment targets has huge negative news about the company, it will have a huge impact on the net value of the fund, and then there will be a huge retracement.

In recent years, scandals of companies such as Zhangzidao, Luckin Coffee and Xincheng Holdings have continued. The first two are mismanagement and financial fraud, while the latter is the moral scandal of the actual controller. The major negative news of these listed companies has led to a sharp drop in share prices, and the fund products of these listed companies will have a huge retreat.

For the stock price retracement caused by the sudden outbreak of negative news in a single listed company, especially the negative news outside the business situation, investors can hardly take precautions in advance because of the sudden incident. Investors can judge whether to sell the fund according to the development trend of subsequent events, and at the same time pay more attention to the situation of other listed companies invested by fund products and evaluate the fund as a whole. If the fund manager handles it properly and other fund targets perform well, investors don't need to panic and sell the fund because the price of a single stock falls. Fund managers have relatively professional investment and risk control capabilities, and proper response is a good opportunity to increase fund positions.

The huge retreat caused by huge negative market news. The stock market crash in early 2020 can be said to be a typical example of the international stock market crash caused by huge negative market news. At the beginning of the year, the spread of the COVID-19 epidemic and the international oil war between the United States and China caused the stock market to plummet, and at the same time triggered a continuous fuse for several days. At the beginning of this year, many fund products that invested heavily in oil and consumption fell below the net value, causing a huge retreat.

Faced with the huge negative information in this market, investors can choose to withdraw from the market first and wait and see. After the influence of negative information is digested by the market, new fund products will be laid out according to the actual situation.

Compared with the first two situations, the change of market from bull to bear is the most serious reason for capital withdrawal, which not only has the greatest impact on strength, but also has a very long-term impact. In the process of conversion from bull to bear, most stocks have fallen. No matter what sector the fund products hold, it is inevitable that the value will plummet and the yield will drop sharply.

At this time, the stocks on the market are all dangerous. For investors, the best way to invest is to wait and see, not to open positions. Only when the market economy situation gradually recovers and the stock market is expected to get out of the bear market can it re-enter the market.

In addition to the above, the random fluctuation of the price of the fund investment target, the callback after the short-term rise is too fast, and the poor performance of the annual report of the enterprise may all lead to the withdrawal of the fund, but the impact is slightly light. Generally speaking, the negative information of the investment target and the negative information of the market are the main reasons for the huge withdrawal of funds. Investors should pay attention to the economic situation and policy changes in domestic and foreign markets and the development of industries with heavy positions. If negative news is found, they can leave early to reduce losses.