First, the more you fall, the more you buy, which just plays a role in sharing costs.
You know, the so-called "buy more when you fall" is usually just to share the cost of people buying funds and let people get rid of the funds as soon as possible, so this is only a way to reduce losses, not a way to help people get benefits from the funds. In this case, people often use the method of falling more and buying more when they have to, so it can only be regarded as a passive defense method. What's more, if the market environment is not very good and people continue to fall after replenishing the fund, then people will only lose more. Therefore, from this perspective, the method of falling more and buying more has certain limitations, which is only suitable for funds under specific circumstances and is closely related to the market environment.
Second, if the fund manager is incompetent, the more money people invest, the more they will eventually lose.
In addition, the ability of fund managers is also one of the risk factors of funds. Therefore, when the fund manager's ability is slightly lacking, the fund does not apply the method of falling more and buying more. To put it simply, only when the fund manager's ability is excellent enough can people gain profits by applying the investment method of falling more and buying more, otherwise they will only be further trapped. So from this perspective, whether a fund can use the method of falling more and buying more depends on the ability of the fund manager, so this method naturally does not apply to all funds.
To sum up, the method of falling more and buying more does not apply to all funds. After all, buying more after falling is only a way to share the cost, and it depends on whether the fund manager has the ability to use this method.
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