The fund has been falling and will not lose all its principal. The main reasons are:

First of all, theoretically, only when the net value of the fund is 0 yuan, the principal will lose money, but the net value of the fund will not be zero. Because the net value of OTC funds is very low, the fund company will convert the fund share;

Secondly, when the fund meets the liquidation conditions, it will face liquidation, and there will be some residual principal after liquidation.

Finally, the floor fund is composed of many stocks, so there will be no delisting of the floor fund. Assuming that a fund is liquidated and delisted in the future, part of the principal after delisting is desirable.

After purchasing funds, investors should focus on long-term investment as much as possible. If they lose money, they will redeem it, and if they go up, they will buy it. It's easy to chase up and kill down, and eventually you will get stuck in it. If you feel that the risk of one-time purchase is high, you can try to invest in the fund. Fund fixed investment is a fixed time, worry-free and trouble-free investment method, similar to the bank's zero deposit and withdrawal.

Funds can be divided into broad sense and narrow sense. Broadly speaking, they refer to a certain amount of funds set up for a certain purpose, such as trust and investment funds, provident funds, retirement funds and so on. In a narrow sense, they refer to funds with specific purposes and uses. Usually, funds mainly refer to securities investment funds. The income of securities investment funds comes from the future, and the performance of the income is inseparable from the performance of the investment target market, which has certain risks.

According to different standards, securities investment funds can be divided into different types:

(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.

(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.

(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.

(4) According to different investment objects, it can be divided into stock funds, bond funds, money market funds and futures funds.