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What does the leverage of leveraged funds mean?
Leveraged capital leverage refers to the borrowing method adopted by fund managers when purchasing assets. After using leverage, the performance of the fund will be affected by leverage amplification. If the investment is successful, the income will increase greatly, but if the investment fails, the loss will also increase. Therefore, leveraged funds have the characteristics of high risk and high return, and should be carefully selected when investing.

The leverage operation of leveraged funds is a high-risk investment, which is not suitable for all investors. In practice, fund managers need to understand the market situation and asset changes, and adjust the leverage ratio according to market forecasts and related information to avoid asset losses caused by leverage operation. In addition, investors need to make decisions according to their own risk tolerance, and don't blindly pursue high returns and ignore risks.

The leverage operation of leveraged funds can help investors get high returns, but it must be carried out at the right time and under the premise of controllable risks. Therefore, when choosing a leveraged fund, besides the performance of the fund manager, it is also necessary to consider the asset investment experience and leverage usage of the fund manager. Investors can effectively avoid risks and obtain higher returns by understanding the leverage operation mode and related risks of leveraged funds.