Income extraction rate, also known as income extraction rate, refers to the ratio of yield to maximum extraction rate in a period of time. For example, the yield of point A is 60%, the yield of point B is 30%, and the retracement from point A to point B is 30%, so the ratio of retracement income is 80%/30%=2. The calculation formula is: income extraction ratio = yield/maximum extraction ratio.

Generally, in real life, the rate of return is used to judge the performance and income of the fund, and the maximum withdrawal ratio is used to judge the risk of the fund. Therefore, combining the extraction ratio of the two can be used as a comprehensive indicator of investors' investment strategy and fund trend.

Usually, the greater the proportion of return withdrawal, the smaller the fund withdrawal and the more stable the fund; The smaller the proportion of return withdrawal, the greater the fund withdrawal, and the greater the fund fluctuation and instability.

The retracement rate refers to the interval in which the fund's net value falls from the highest position to the lowest position within a period of time, and its formula is: (high net value-low net value)/high point * 100%. For example, if the highest value of a fund's net worth in a month is 2 yuan and the lowest value is 1 yuan, then the withdrawal rate of this fund in this month = (2-1)/2 *100% = 50%.

Generally speaking, in the fund market, investors can judge whether the fund is worth investing and its subsequent development according to the withdrawal rate of the fund. The greater the withdrawal rate of the fund, the greater the chance of the fund's subsequent rebound, but the risk is also greater, so the probability of loss is also greater, which is more suitable for radical investors. You can consider buying a fund with a large withdrawal rate; The smaller the withdrawal rate, the more stable the subsequent development of the fund, the smaller the fund fluctuation, the lower the risk and the lower the loss probability. Funds with smaller retracement rate are more suitable for stable investors.

For fund share holders, the higher the withdrawal rate, the greater the loss may be; For investors who have never bought a fund, the higher the withdrawal rate, the lower the net value of the fund and the lower the purchase cost; For investors who buy at one time, the lower the withdrawal rate, the lower the maximum loss and the more stable it is; For ordinary investors, the higher the withdrawal rate, the greater the fluctuation, the lower the minimum purchase cost, and the more fund shares they get.