In a bear market, with poor market conditions or falling stocks, the foundation will drop sharply. However, the market value held by investors will not lose money. The worst result is the liquidation of the fund. After the liquidation, the fund shares held by investors will be converted into cash according to the net value before liquidation. After deducting the liquidation expenses, it will be returned to the investors. Liquidation is generally completed within one month after the termination of the fund. According to different fund companies, the liquidation time may be different, and the specific time shall be subject to the announcement of the fund company.

The following three situations will enter liquidation:

1. Closed-end fund expires. Closed-end funds generally have a duration, and they will be liquidated if they do not extend their duration after expiration.

2. Open-end funds meet the liquidation conditions. Open-end funds that meet the following conditions will be liquidated: first, the net value of the fund is less than 50 million for 20 consecutive working days, and second, the number of fund holders is less than 200 for 20 consecutive working days.

3. The scale of new fund raising is not up to standard. At the time of initial public offering, the minimum scale is generally 50 million. If it fails to reach the scale, it means that the fund has failed to issue and needs liquidation.

At the same time, in a bear market, affected by this, funds will generally fall. Investors have the following skills when buying funds:

1. In a bear market, investors can buy funds through fixed investment, that is, through continuous purchase, increase the share of positions, share the cost of positions, spread risks, and then realize the smile curve effect.

2. Investors can set profit stop-loss position in the process of fixed investment operation to ensure their own income. The fixed investment of the fund has the characteristics of long-term, compound interest and average cost, and there is no need to set a stop loss in the process of fixed investment.

3. Change the fund dividend method to dividend reinvestment to obtain compound interest effect.

Of course, when choosing a fund, investors should try to choose a fund with a good history and great development potential, rather than a fund with limited development potential and poor historical performance of fund managers.