There will inevitably be ups and downs when buying a fund, so some investors will find that when the net value of the fund falls, it needs to rise more to return to its original position, so how much will the fund return to its original position if it falls by 5%? Should the fund be bought when it goes up or when it goes down? I have prepared relevant contents for your reference.

How much did the fund recover when it fell by 5%?

The calculation formula of rising cost recovery is: rising cost recovery range =1(1-loss range)-1.

Suppose: when the investor loses 5%, the return on capital is =1(1-5%)-1=, so when the fund purchased by the investor loses 5%, it needs to rise to recover its capital. If it is another decline, you can also use this formula to draw inferences.

For example, when the investor loses 50%, the increase is =1(1-50%)-1=100%. Therefore, when investors lose 50%, they need to increase 100%.

If investors are optimistic about the fund, they can consider covering the position when the fund falls, sharing the cost of the position by increasing the share of the position, and returning the funds with a lower increase. They can also use the trend of the fund to conduct high-selling and low-sucking operations and earn the difference to share the cost of the position.

Should the fund be bought when it goes up or when it goes down?

Buy when the fund goes up and buy when it goes down. For example, when a fund goes up and buys, it is generally a short-term fund investor, who will invest more money and then stop the loss in time when making money, but the risk is relatively high. When chasing up, if the fund market is not good and suddenly plummets, he will be trapped.