Some small partners found that when the fund fell, several funds they bought fell, and they felt that all funds were falling. So do you know what is the main reason for the decline of the fund? The following small series will answer your question.
What is the main reason for the decline of the fund?
Market risk: the overall fluctuation and uncertainty of the market is one of the main reasons leading to the decline of the fund. Economic changes, political situation, interest rate changes and other factors may have an impact on the market, and then lead to the decline of the fund.
Industry or company risk: the poor performance of a specific industry or company may put pressure on related funds. If an industry faces problems, or a company encounters difficulties, funds holding relevant stocks may fall.
Investment strategy and management ability of the fund: the investment strategy and decision of the fund manager may affect the performance of the fund. If there are mistakes in the research and selection of fund managers, or there are problems in the management of fund companies, funds may face a decline.
Price fluctuation of risky assets: The price fluctuation of risky assets such as stocks and bonds will also have an impact on the fund. Changes in market sentiment towards risky assets, changes in interest rates, corporate profits and other factors may lead to the decline of the fund.
Must the fund lose money if it falls?
I'm not sure if the fund will lose money if it falls. The decline of the fund does not mean that it will definitely lose money. The specific situation may vary due to factors such as fund type, investment portfolio and investment period. The price fluctuation of the fund may be temporary. If investors hold it for a long time, the fund may rebound in the future and bring benefits. However, if investors choose to sell when the fund falls, they may face losses. Assess the potential risks and benefits of investment, and advise investors to fully understand the fund investment and make decisions according to their own investment objectives and risk tolerance.
Why did all the funds fall?
1, the investment target of the fund's heavy position plummeted.
Funds rise and fall according to investment objectives. If the fund investment target falls, then the fund will also fall. If investors buy funds with similar investment targets, they are likely to fall. For example, if funds invest in the same sector, the investment objectives of funds in the same sector are likely to be similar.
2. The overall market is not good.
If the market is falling, that is to say, most stocks are falling, then funds that have invested in stocks will also fall or encounter major emergencies, which will lead to the decline of funds.
All funds fell, continue to hold or sell?
If investors are optimistic about the fund, they can consider covering the position when the fund falls, sharing the cost of the position by increasing the share of the position, and returning the funds with a lower increase. They can also use the trend of the fund to conduct high-selling and low-sucking operations and earn the difference to share the cost of the position.
However, it should be noted that if the fund falls and increases its position, it will increase the risk. If the fund does not rise, the losses will increase, so there must be some tolerance. In addition, the fund is a kind of venture capital. When investors buy, if the fund falls, they must analyze the reasons, then pay attention to its risks, don't buy blindly, choose the fund that suits them, and consider their risk tolerance.
Can the fund make money if it is kept for a long time?
There are many factors that affect whether the fund can make money, such as the investment ability of the fund manager and the fund market. If the ability to choose a fund manager is not very strong and the fund market is not very good, then the longer the fund stays, the more money will be lost, so buying a fund needs to be considered from many aspects.
Money doesn't mean making money if you put it away for a long time. If they want to make money, they must choose a good fund to hold for a long time. They must be careful when choosing a fund. First of all, they should choose the type of fund according to their risk tolerance.
If you can't bear the big risk, then choose the type with small risk. If you want to pursue returns, you need to take certain risks. You can consider the types of funds with greater risks, such as stock funds, index funds and hybrid funds.
In addition, it is also important to choose a good fund manager. You can refer to the past performance of fund managers and try to choose a fund manager with good past performance. Secondly, when choosing the working years of fund managers, it is best to choose those with longer working hours, such as more than four years.
The number of fund managers and the maximum withdrawal amount also need to be considered. Don't choose too many management numbers. The management energy of fund managers is limited, and it is best not to exceed five. We should consider the employment return and moderate fund size.