Whether investing in funds or stocks, investors will set their own profit stop points. Once the profit stop point or loss point is reached, the user needs to sell in time. In the market, tiered funds are divided into A and B funds from an ordinary fund.

Why do the losses increase after the discount of tiered funds?

The premium trading part does not participate in the discount, so there will be a lot of losses after the discount of tiered funds. In the process of triggering the downward discount of tiered fund B, since tiered stock fund B is traded on the exchange, the shares are subject to a price limit limit. Moreover, when the market continues to decline, the net value of graded stock base B shrinks rapidly. At the same time, value leverage is much higher than price leverage and the rate of amplification is also high, which promotes the accelerated decline of the net value of graded stock fund B.

When the market continues to decline, the trading price of grade B is bound to continue to decline. Because graded funds can be traded on exchanges, the transaction price must involve discounts and premiums. After the discount, such premiums will be forced to disappear. If the premium rate is higher than 100%, the asset will lose at least 50%, so there will be a large loss.

In general, because the discounted premium of graded funds cannot be taken into account, losses will increase. If it is believed that the probability of a rebound or reversal in the market outlook is high and the decline required to trigger a downward discount is still large, investors can wait and see temporarily in the short term.