What are the reasons for the continuous decline of funds?
1 Affected by market conditions.
Most equity funds invest in stocks, so when the stock market plummets, the possibility of the fund plummeting is very high. Therefore, when buying a fund, you can look at which stocks the fund mainly holds heavily, and then see if the stocks you invest in have future prospects.
2 Overvaluation
Generally, when the fund continues to rise for a period of time and the fund valuation is high, the possibility of decline is relatively large, because the fund valuation is to estimate the assets and liabilities of the fund according to a certain price. If the fund is overvalued, the risk is greater and the possibility of fund collapse is greater.
3. Encounter unexpected events with great influence.
The investment of the fund depends on entering the market. If the financial market has a relatively large impact of emergencies, it will also directly affect the fund. For example, the financial market will lead to a sharp drop in the stock market, which will affect the fund.
How to remedy the fund decline?
1 make up the position.
Buy some during the decline of the fund, share the cost of the fund by increasing the number of funds held, so as to spread its risks and wait for the fund to rebound. It should be noted that investors should control their positions reasonably and buy in batches during the operation of covering positions.
2. Carry out high throwing and low sucking operation.
In the process of fund decline, investors can seize the rebound trend in the process of decline and carry out high-selling and low-sucking operations, that is, sell at the high position of rebound and buy at the low position to earn the difference and make up for some losses. If the fund rebound is hopeless, investors can consider cutting meat, which can avoid more losses.