The rise and fall of fund net value directly affects fund income, which has always been the focus of investors' attention. So, why is the net value of the fund falling? What are the reasons for the decline in fund net value? Xi Cai Jun has prepared relevant contents for your reference.

Why is the net value of the fund falling?

1, the market is not good.

If the economy is depressed and the market is poor, it is an important reason that affects the continuous decline of the fund's net value. The influence of economic fundamentals is very extensive and lasting. For example, in the event of an economic crisis, the fund's investment target falls, which directly leads to a decline in the fund's net value. At the same time, investors' bad expectations for the future and financial difficulties will reduce related investments and make the fund's net value continue to fall.

2. Improper fund management and operation.

If the fund company is poorly managed, the fund manager's investment level is low, his performance is poor and his work experience is insufficient, which is likely to lead to a large proportion of non-performing assets invested by the fund and a continuous loss of performance, thus leading to a continuous decline in the fund's net value.

What is the reason for the decline in fund net value?

In addition to the above reasons, the net value of the fund will decline, and there are some other factors that will also lead to the decline of the net value of the fund.

1, national policy

For example, if the country adopts a tight monetary policy, there will be no excess funds flowing into the stock market, and the reduction of liquidity will not push up the stock price, so the net value of funds invested in stocks will fall.

2. International situation

For example, with the deterioration of the international economic situation and the tense political situation, investors will worry about financial management, reduce their financial investment and choose physical currencies such as gold to hedge, resulting in a decline in the net value of the fund.

3. Fund dividends

Fund dividends need to be distributed to investors in the form of cash or dividend reinvestment, so the net value of the fund usually falls on the day of fund dividends. However, after the fund pays dividends, the total assets of investors have not decreased.