Fund is an investment method that many investors will choose. After all, fund investment is less risky than stock investment, but it can bring good returns to investors. But recently, the fund market is not very good, and many investors' funds have been in a state of loss. At this time, many investors will worry that the foundation has been losing money. Let's analyze it in detail.

Has the foundation been losing money?

In fact, under normal circumstances, even if the fund has been losing money, it will not lose money. Usually, when the fund loses money to a certain extent, the fund manager will liquidate the fund. The so-called fund liquidation is to realize all the assets of the fund and distribute the proceeds to the fund holders. Usually when the fund is established, the liquidation time of the fund is stipulated.

Capital settlement often needs to meet certain conditions. If the net asset value of the fund is less than 50 million yuan for 60 consecutive days, or the number of fund share holders is less than 200 for 60 consecutive days, the fund manager has the right to announce the termination of the fund after being approved by the China Securities Regulatory Commission. In addition, when the fund falls below 0.3 yuan, it will often enter the process of automatic liquidation.

Strictly speaking, most funds belong to a long-term investment process. If the investment cycle of the fund is extended, most Public Offering of Fund will be profitable. Therefore, many investors in the market will not choose to sell the fund when it loses money, but will choose to buy more fund shares to stabilize the investment cost of the fund. If the fund goes up later, investors can still make a profit.

Based on the above, the possibility of fund loss is very small. When the fund loses money, how to make subsequent investment decisions is based on the investors' own wishes.