Fund lock-in refers to the market price falling for a period of time after the purchase of the fund, resulting in the net value of the fund being lower than the purchase cost. If investors continue to hold the fund, it will cause the fund to lock up.

Capital locking is a kind of venture capital, and investors need to make careful judgments according to their own risk preferences and market trends when buying. If the market is on the rise at the time of purchase, such as a bull market, then the risk of capital locking is relatively low. However, if the market is in a downturn at the time of purchase, such as a bear market, then the possibility of capital locking will increase.

Locking in funds is not terrible. As long as you master the correct investment strategy, you can reduce the risk. When buying funds, we should choose funds with good performance and standardized management, and diversify our investments to avoid being too concentrated in a certain sector or industry. In addition, you can keep abreast of market trends, rationally adjust positions and avoid aggravating losses.