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What is the reason for the fund's sharp drop?
1. Market adjustment: The data shows that in 2020, the Shanghai Composite Index rose by nearly 14%, the Shenzhen Component Index rose by nearly 39%, and the Growth Enterprise Market Index rose by nearly 65%. Some experts said that after last year's surge, it is normal for the market to adjust.

2. There are many negative factors: for example, the rising interest rate of US 10-year treasury bonds, the tightening of monetary policy by central banks and the sharp decline in the A-share market have all had a negative impact on the fund market.

Extended data:

Fund investment risk warning:

In the process of investment operation, the fund may face various risks, including market risk, management risk, technology risk and compliance risk. Huge redemption risk is a unique risk of open-end funds, that is, when the net redemption application of the fund exceeds 10% of the total fund share in a single trading day, investors may not be able to redeem all the fund shares held in time.

Investors should carefully read the fund contract, prospectus, fund announcement and other fund legal documents, understand the basic information, trading rules and risk-return characteristics of the fund, and judge whether the fund is compatible with the investor's risk tolerance according to their own investment purpose, investment period, investment experience and asset status.

Investors should fully understand the difference between regular investment and one-time withdrawal of funds. Regular fixed investment is a simple and easy way to guide investors to make long-term investment and average investment cost. However, fixed investment can not avoid the inherent risks of fund investment, can not guarantee investors to obtain income, nor is it an equivalent financial management method to replace savings.