The maximum withdrawal of funds refers to the largest decline in the fund's rate of return within a period of time. How to understand it? For example, if you buy a fund at the price of 10 yuan, the fund first rises to 10.5 yuan, then rises to 12 yuan, then falls to 8 yuan and then rises to 9 yuan, then the biggest retreat of the fund is (8- 12)/ 12. However, if this fund is to reach 12 yuan from Zhang Hui, 8 yuan, it needs to increase by about 4 1.2%. Therefore, the more a fund falls, the more difficult it is to rise back.
If a fund can control the maximum retracement data well, it shows that the fund manager has a very keen judgment on the market and has the ability to regulate the fund position.
How to treat the data of the maximum withdrawal of funds? What is the maximum refund and how small?
In fact, we can know by comparison. For example, we can choose a time interval, compare the maximum withdrawal data of the fund with the maximum withdrawal data of the index in the performance benchmark, and then compare it with the maximum withdrawal data of other similar funds, and we will have an idea.
Of course, we should not only look at the size of the maximum retracement data, but also compare the income level of the fund. If a fund falls less and rises more, it is naturally within our consideration.
Maximum retracement data is one of the most important indicators to judge fund risk, which needs investors' attention. If a fund is good at controlling risks, it will not be too bad.