What does the fund manager mean by controlling the exit?
The controllable withdrawal of the fund manager refers to the investment strategy of the fund manager to protect the investment income, limit the withdrawal scope of the fund and make the fund as stable as possible.
From the establishment to the formal operation of the fund, its investment is managed by the fund manager, who is responsible for the fund he manages. At the same time, it is also for the fund manager's own income, which drives the fund manager to adopt various ways to make the fund achieve stable income as much as possible, including controlling withdrawal.
About fund withdrawal, it refers to the percentage value reflected by the net value of fund shares falling from high to low in a period of time. When quantifying the fund performance, the maximum withdrawal amount of the fund will be used to judge, and the maximum withdrawal amount can be used to measure the biggest loss that fund investors may face in a certain period of time. If the growth rates of the two funds are the same, but the maximum withdrawal of one fund is higher than that of the other, then it can be said that the fund with higher maximum withdrawal value has greater potential loss risk.
How to calculate the maximum retreat?
When calculating the maximum retracement, the investment cycle time of a fund is generally selected first, and the maximum retracement is calculated by T 1 (the highest net value reached during this period) and T2 (the lowest net value).
That is, subtract the net value of the lowest point T2 from the net value of the highest point T 1, and then compare the obtained value with the net value of the highest point T 1 to get the maximum withdrawal value. If the end time of the selected investment cycle is when the fund's net value is the highest, then it cannot be pushed back, and the maximum retracement is 0.