1, fund dividends
Many fund contracts will stipulate that the fund needs to pay dividends to investors after meeting certain conditions. Dividends usually lead to a sharp decline in the net value of funds in the short term.
2. Investment losses
Fund investment is actually that investors hand over funds to fund companies and fund managers for management and operation. Taking bond funds as an example, fund managers mainly use funds for bond investment, and the bond investment return obtained is one of the expected sources of income of the fund. If a bond defaults and the fund manager holds the bond heavily, the net value may fall.
3. Large redemption
If a small-scale fund encounters a large redemption, the net value of the fund will also be greatly affected. The net redemption value of the fund is accurate to five decimal places according to four rooms and five, so there is a certain error in redemption accounting. Once a large number of redemptions are encountered and the fund scale is small, this error will become obvious, resulting in a significant decline in the net redemption value of the fund.
Extended data:
Investor investment funds mainly have the following advantages:
1, low risk. Bond funds can effectively reduce the risks that a single investor may face by pooling investors' funds to invest in different bonds.
2. Expert management. With the increasing diversification of bond varieties, ordinary investors should not only carefully study the issuer, but also judge the macroeconomic indicators such as interest rate trend, which is often beyond their ability, while investment bond funds can share the results of expert management.
3. Strong liquidity. If investors invest in illiquid bonds. Only when it is due can it be cashed, and indirectly investing in bonds through bond funds can obtain higher liquidity and can transfer or redeem the bond funds held at any time.
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