When the fund loses money, most people are uncomfortable and want to hold positions to earn back the lost money, but they are afraid that the fund will continue to fall and lead to losses. So what phenomenon means that the fund is losing money? So today, Bian Xiao is here to sort out what phenomenon means that the fund is losing money. Let's have a look!
What phenomenon shows that the fund is losing money?
Decline in fund net value: the fund net value is the net assets remaining after deducting liabilities from the fund assets, which is generally expressed as the net value of unit share. If the net value of the fund falls, it means that the value of investors' fund shares decreases.
Negative rate of return: the rate of return of a fund refers to the rate of return on investment in a certain period of time. If the fund's rate of return is negative, it means that the investment amount of investors is relatively reduced.
What should I do after the fund loses money?
Evaluate the investment prospect: analyze the reasons for the fund's loss and evaluate the investment prospect. Understand the market and industry of fund investment and the performance of investment management team. If the loss is temporary or caused by market fluctuation, you can consider continuing to hold it.
Diversification of investment risks: the loss of the fund may be caused by the decline in the value of investment assets. At this time, we can consider further diversifying investment risks. Investors can spread their funds to different types of funds or other asset classes to reduce the risk of single investment.
Long-term holding strategy: fund investment is a long-term investment strategy, and short-term market fluctuations may lead to losses. Investors can adopt a long-term holding strategy, believing that the market trend will guarantee the return on investment for a long time.
Consulting professional advice: If you are confused or worried about the loss of the fund, you can consult a professional financial consultant or financial expert to get personalized advice and opinions.
The fund has lost 50%. Can it get its principal back?
If the fund loses 50%, it depends on whether it can return the principal. If the purchased fund loses 50%, the loss will be more serious. It is necessary to think about what caused it to persist for so long. This is definitely a loss-making process, and the fund will not fall so much in a short time.
It is necessary to analyze the causes of fund losses and then prescribe the right medicine. If it is because of the fund itself, such as the fund manager's misoperation, or the fund itself is in a bad state, then don't insist. It is best to redeem the stop loss in time, otherwise it will fall to the bottom and the loss will be more serious.
If it is because investors bought the wrong place, we assume that the fund's early income is very good, just because the increase is too high, investors just bought at the highest point, or because the market is not good, most funds are falling, but there are signs of rebound, so we can continue to hold them and wait for the fund to rise to make money, but the probability of returning to the capital in the short term is not great, and it needs a long-term accumulation process.
Because the fund has lost 50%, it needs to increase more to return to its capital. The calculation formula of capital increase is: capital increase =1(1-loss range)-1, that is, when the investor loses 50%, capital increase = 1/.
It is difficult for a fund to rise 100% in a short time, and it takes a long time. However, if you add positions during the decline of the fund, it may accelerate the recovery, but adding positions will aggravate the risk of the fund. If you make a mistake, the fund is still falling, and it is likely to suffer heavy losses.
Therefore, be cautious when adding funds. Unless you are very optimistic about this fund, it is not recommended to add positions. In addition, you should know your ability to take risks. If there is no ability to take risks, it is generally recommended to redeem the stop loss.
Is the fund valuation falling sharply suitable for buying?
It depends on whether the fund valuation is suitable for buying. When the fund's valuation plummets, the first thing to do is to analyze the reasons for the fund's plunge, whether the fund itself or the market is not good, and most funds are falling.
If it is due to the reasons of the fund itself, such as the fund manager's misoperation, or the fund itself is not good, the fund always falls more and rises less, then it is not recommended to buy it. It may be a bottomless pit, and the more you lose, the more you lose.
If most funds fall because of the influence of market factors, then you can wait and find the right opportunity to buy, because when most funds fall, they are generally funds that have a big relationship with the stock market. When the stock market is bad, funds will also fall. When the fund valuation is low, the fund has investment value, the fund has more room for growth, and the investment fund has greater probability of gaining income.
What does the sharp decline in fund valuation mean?
The sharp decline in the valuation of the fund means that the price of the fund is falling sharply. The lower the general fund valuation, the smaller the risk will be, indicating that the fund has certain investment value, greater room for growth and the possibility of making money. You can choose to buy when the valuation of the fund falls sharply. If you buy at a low level and sell at a high level, then the fund may make money. If you buy at a high level, you will lose.
But when buying a fund, there are many factors that affect the rise and fall of the fund. Everyone should look at the prospects of fund investment targets, and then analyze them in combination with market conditions and other reasons. Most of the funds whose general fund valuations have plummeted have invested in the stock market, which is risky. It depends on whether the stocks held by the fund have stabilized. When the stock market or stocks held by the fund have stabilized, it is the best time to start.
There are few cases where the valuation of a fund like the Monetary Fund has fallen sharply. Because the investment direction is the money market, the risk is relatively small and the income is relatively stable. There are few cases in which the valuation of the fund has fallen sharply, and the general fund has relatively small fluctuations.
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