The fund can only return to its capital if it falls by 5%. The calculation formula of rising cost recovery is: rising cost recovery range =1(1-loss range)-1.
Let's give a simple example: suppose an investor bought a stock fund, but the fund kept falling because of the bad market, and the investor just bought at a high point when buying, so there was a loss of 5%. Then, if substituted into the formula, the increase is = 1/( 1-5%)-65433.
If investors want to earn back quickly after the decline, they can increase their positions when the fund falls, share the cost of holding positions evenly by increasing the share of positions, and return to the capital with a lower increase.
Secondly, you can also look at the trend chart of the fund and share the cost of holding positions equally through the method of high throwing and low sucking. When the fund falls, you can choose different methods to make up the position according to your own situation, but it should be noted that making up the position will increase the risk, so you must be cautious when making up the position.
If you choose a bad fund to cover your position because of misjudgment, then when the fund continues to fall, there will be serious losses, so it is very important to stop the loss in time when you choose a bad fund.