Not necessarily, the rise and fall of the fund is determined by the investment target. If the investment target goes up, the fund will go up, and investors may return to their capital. If the investment target falls, the fund will fall, and the probability of investors returning to the capital is relatively small. Fund investors with large losses can make up their positions to reduce costs. The lower the cost, the less risk investors will take.

Fund, in English, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations.

From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The fund we are talking about mainly refers to the securities investment fund.

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 investors, it can be divided into bond funds, stock funds, money funds and hybrid funds.

The big bull market in the 1990s created a batch of new wealth, and hedge funds blossomed everywhere. Because hedge funds emphasize the income distribution mode with consistent interests and the investment mode of "outperforming the market", traders and investors pay more attention to hedge funds In the next decade, the investment strategies of hedge funds will emerge one after another, including credit arbitrage, junk bonds, fixed-income securities, quantitative investment, multi-strategy investment and so on.

In the first decade of 2 1 century, hedge funds swept the world again. In 2008, the total assets held by global hedge funds reached 1.93 trillion US dollars. However, the credit crisis in 2008 hit hedge funds hard, and their value shrank. In addition, the liquidity of some markets has been blocked, and many hedge funds have begun to restrict investors' redemption.