When the fund market is not good, it is common to fall by about 20%. Many people have the illusion that a fund that has fallen by 20% and risen by 20% will return to its original value. Actually, it's not. Its capital has no return, so how much does it cost for the fund to fall by 20%? How to make up the position and return to the original? We have prepared relevant content for everyone, and interested friends will take a look!

Generally speaking, when a fund loses money, it needs to increase more than the previous loss before it can recover its capital, rather than saying that it will recover as much as it loses. You can remember the formula to increase its capital to calculate.

The formula of capital increase is: capital increase =1(1-loss range)-1, that is, when the investor loses 20%, capital increase = 1/( 1- 20%)-65438+.

For example, suppose an investor bought a fund with a price of 1 1,000 yuan, but the fund fell by 20% in one month, so the money lost is: 1 1,000 * 20% = 200 yuan, and the total amount of the investor's funds is only: 1 1,000-200 =.

If it is to rise to the original 1 ,000 yuan, then it needs to rise by 25% to recover the cost. The above method is to calculate that if investors do not add positions and make up positions after losses, then the increase will be smaller.

When covering positions, you can use the method of covering positions in batches. When covering positions, it is best to set a falling value to cover positions, such as 5%~20%, but it is worth noting that covering positions will increase risks, so investors should be able to take risks after covering positions.