The fund withdrawal rate refers to the maximum extent that the net value of the fund has been higher than a certain value, but it has fallen over a period of time. A high retracement rate indicates that the degree and frequency of fund net value decline are relatively large, while a low retracement rate indicates that the fund risk is relatively small. Let's analyze this problem from many angles.
1. Long-term investment
If you are a long-term investor, the return rate of funds should not be the decision-making factor of your investment. Because in the long-term investment time, the withdrawal rate of the fund will gradually decrease with the increase of time, while the return rate of the fund will gradually increase. Therefore, when choosing a fund, the long-term rate of return and the ability of the fund manager should be more important considerations.
2. Short-term speculation
If you are a short-term speculator, the rate of capital return becomes very important. Because the withdrawal rate shows the volatility of the fund, it can be used to predict future price fluctuations. Generally speaking, funds with high withdrawal rate may be risky, but they may also bring high returns and are suitable for investors with strong risk tolerance. Funds with low withdrawal rate are relatively stable and suitable for conservative investors.
3. Fund products
In the financial market, fund managers need to choose appropriate strategies according to the needs of investors and market conditions, so as to launch fund products. When choosing fund products, we must first determine our investment objectives, risk preference and investment period. If you want to pursue higher returns, you can choose a fund with higher withdrawal rate, but you should also pay attention to risks. If the risk appetite is low, it is safer to choose a fund with a low return rate.
4. Comprehensive effect
The withdrawal rate of the fund is only a risk indicator, and the evaluation alone cannot really reflect the advantages and disadvantages of the fund. In addition to the cash withdrawal rate, other indicators of the fund need to be considered, such as annualized rate of return, target return, asset allocation and so on. Only by comprehensively considering multiple indicators can we truly evaluate the comprehensive effect and value of fund products.
To sum up, whether the capital withdrawal rate is high or low depends on the investor's investment period, risk preference and investment objectives. Generally speaking, in short-term speculation, funds with high return rate may bring higher returns, but the risks are also greater. In long-term investment, the importance of capital withdrawal rate will be reduced, and more attention should be paid to long-term stable income. On the whole, it is the most rational choice to choose a suitable fund product and consider a number of indicators comprehensively.