When investing in funds, fund profits and losses are also relatively normal phenomena. Under normal circumstances, when investing in a fund, you can understand the profit and loss of the fund based on changes in the net value of the fund units. Often when the fund redeems the unit, the net value is lower than the net value when it was purchased, then the fund will make a loss. Do you still need to continue buying when the fund is losing money? Let’s find out together.

Should I continue to buy the fund if it loses money?

There are two options for whether the fund needs to be invested if the fund loses money, which mainly depends on the investor’s prognosis and development of the fund, as follows: :

1 Investors are relatively optimistic about the fund. If the net value of the fund is still likely to rise in the future, they can choose the fund to buy the fund. Buy when the net value of the fund is low, and then you can earn the difference when the net value of the fund rises. If it develops well, you can even make up for the previous losses.

2 If investors are not optimistic about the fund, it is recommended to stop losses in time and redeem the money invested in the fund to avoid further losses caused by the continued decline of the fund. At this time, investors can switch to some funds with a higher net value per unit.

In fact, the fund itself is a long-term investment process. The net value of the fund is affected by many factors such as the market and the fund manager. Sometimes when a fund loses money, if you add to the position and buy at a low level, if the net value subsequently rises, you can make good profits.