When buying a fund, many people like to add positions after the fund falls, so why do many people dare to add positions when buying a fund? What is the reason?

Reason 1: Low net fund value can reduce the purchase cost.

Net fund value refers to the net asset value of each fund unit, which is equal to the balance of total assets minus total liabilities of the fund and then divided by the total number of units issued by the fund.

Buying when the net value of the fund is low can reduce the buying cost, but it should be noted that the net value of the fund cannot be used as the basis for buying and selling investments, because there is no upper limit on the price of the fund. In addition to dividends, as long as the fund keeps making money, its net value, that is, the price, will keep rising. Therefore, when buying a fund, we should analyze the past performance of the fund and the investment level of the fund manager.

Reason 2: The low fund position can reduce the buying cost.

When the fund falls, then the fund is at a relatively low level. You should know that buying a fund is mainly to earn the difference, that is to say, only by buying at a low level and selling at a high level can you make money. If you buy at a high level, you will lose money if you sell at a low level.

Therefore, when buying, everyone likes to add positions when the fund falls, which reduces the cost of buying to a certain extent and will feel more cost-effective. If you buy when the fund rises, the risk is relatively high, because the risk of chasing high is relatively high, and there may be serious losses.

Reason three: I want to get back to my book soon.

When buying a fund, if you want to return to your capital quickly, you will generally increase your position when the fund falls, and you can make money when the fund rises. When you earn a certain degree, you will have the possibility of returning to your capital, so many people increase their positions to buy funds when the funds fall.

However, it should be noted that not all funds are suitable for adding positions when the funds fall, but it depends on the situation. Although some funds increase their positions when the fund falls, they can speed up the recovery and reduce the buying cost, but if they choose a poor fund, they may get more losses.

For example, a poor fund always falls much, rises little and continues to fall. Even if the fund position falls again, the net value of the fund will be lower, and the possibility of returning to the capital is relatively small. Because there is no bottom, you must choose a good fund to hold for a long time when buying a fund to make money.