Why do you want to see the biggest retracement when buying a fund?
The biggest retracement refers to the biggest decline of the fund in the past period of time, that is, the biggest loss that may occur after investors buy the fund. When investors buy funds, they can see the maximum withdrawal, which can effectively prevent investment risks and reduce the probability of loss.
For more stable investors, it is best to choose a fund with a smaller maximum withdrawal rate, because the smaller the maximum withdrawal rate, the smaller the fluctuation range and the more stable the development of the fund. But at the same time, the fund's rate of return will be relatively low. That is to say, other things being equal, investors are advised to choose the fund with the largest withdrawal and smaller investment.
The maximum withdrawal of funds is related to the market situation and the fund manager's ability to judge the market and control the position.
How to see the maximum withdrawal of funds?
First of all, we should choose a historical trend of the fund, with at least one band high point and low point. Because the maximum withdrawal amount of the fund is calculated by historical data.
Because the decline of funds from the highest to the lowest in different periods may be different, and the maximum extraction data in different historical periods may be different. In order to make the data closer to reality, it is best to choose a historical trend from now to some time in the past.
Secondly, at least find a comparative reference. Because judging whether the maximum withdrawal amount of a fund is large or small, there must be a reference object to compare with it.
Generally speaking, this reference can be other funds of the same type or an index related to the fund. If you want to choose among multiple funds, the reference is naturally the best among other similar funds. And if you just want to judge whether a fund is worth buying, just compare it with the relevant index.
The above is the analysis of the reasons for the biggest withdrawal of fund investment, hoping to help.