if the fund keeps falling, will it lose all its principal?

first of all, it is clear that the fund belongs to a kind of investment target, and investment is risky, so you should be cautious when entering the market!

There are two kinds of funds: cemetery fund and private equity fund. Each fund has its own risk control line, especially cemetery. If there is no limit on the risk control, if the fund keeps falling, it is possible to drop the principal!

so how to avoid this kind of situation? There are the following methods:

1. Learn professional investment knowledge, and have in-depth investigation and research on the investment industry, such as the liquor fund. I have been deeply involved in the liquor industry for many years, have my own unique views on the liquor industry, and have my own judgments on the market, so that the probability of making money from my own investment in funds in related fields will be better, at least I have a bottom

2. Take a fixed investment model to invest in the fund, or set the expected income. This type is especially suitable for index funds, because any index has a cycle, which is closely related to the industry cycle. If investors with insufficient investment experience, they can choose industries that they are familiar with or optimistic about for a long time, such as biomedical funds. Under the influence of the epidemic, the benefits to biomedicine will last for a long time, and you will have a good harvest.

3. Pay attention to avoiding traps. If you don't understand, don't blindly trust others. Caution should be taken when investing in the market with risks

The essence of the fund is to invest in a basket of stocks, and reduce the risk by diversifying the shareholding. However, if the principal is lost all the time, the fund products purchased through formal channels in the market should not appear, or it is almost impossible.

Fund purchases are accounted for according to the share. For example, if you buy cabbage in 1 yuan at a price of one catty in 2 yuan, your account will show 5 jins. No matter how the price of cabbage changes, you will always have 5 jins of cabbage in your account. When the price of cabbage is higher than that in 2 yuan, you will make money, and when it is lower than that in 2 yuan, you will lose money. Even if the price is lower, you will still have 5 jins of cabbage in your hand. Therefore, as long as you buy a formally issued fund, you won't lose all the principal.