In the final analysis, the rise and fall of the fund's net value is the rise and fall of the assets held by the fund, mainly stocks, because the fund's net value will rise after the stocks held by the fund rise. If the stock held by the fund falls, the net value of the fund will fall. But the rise and fall of stocks are influenced by many factors.
The ability of the fund manager has a great influence on the fund, because a strong fund manager can allocate good assets for the fund. General fund managers will adjust the stocks held by the fund according to the changes in the stock market, so that the net value of the fund can always have good stock assets, and the subsequent net value of the fund will rise steadily.
When investing in a fund, we should also pay attention to the scale of the fund. Generally, do not choose larger funds, because such funds need to allocate more assets, which requires higher ability of fund managers, and large funds need to set aside more cash to prevent large-scale redemption.
When investing in funds, we should also understand the risks faced by investment funds, including liquidity risk, institutional management risk, policy risk, personal operation error risk, stock market fluctuation risk and so on. Among them, liquidity risk means that the fund may be redeemed in large quantities when it falls, and the company that manages the fund may suspend redemption at this time, thus forming liquidity risk.
Finally, don't invest all your money in one fund every day, but don't diversify your investment too much. After all, people's energy is limited. It is very tiring to study several funds and care about their core data, let alone buy multiple funds on multiple platforms. At the same time, don't open many accounts to invest in funds, which increases the burden of management.