Therefore, when we calculate our own fund income and cost, the index of share is absolutely indispensable. Many novice investors pay attention to the ups and downs every day after buying the fund, fearing that the fund will lose less shares. Then the question is, if the fund is in a state of decline, will our share decrease or increase?
First of all, we can tell you clearly that the fund is in a state of loss, and its share will not increase or decrease. As long as you don't increase your position and sell the fund you hold, your share will remain unchanged, because the decline of the fund is only the loss of net value.
For example, if you spend 1000 yuan to buy a fund with a net value of 1 yuan, then you get 1000 yuan. When the net value drops to 0.5, your fund share will still be 1000, but the value of the fund in your hand will drop by half to 1000. So share has nothing to do with ups and downs. No matter how the fund loses money, as long as investors don't buy or sell, the share will not change.
However, when the fund we bought falls, investors can continue to buy it to share the cost price, so that when it rises again, it will return to its original position faster and earn more money. It is unwise for us to sell the fund during the downturn. Investors must always keep in mind the fund investment principle of taking profits and not stopping losses.