When buying a fund, some investors like to diversify their funds, thinking that they can diversify their risks, thinking that this fund has fallen, and maybe another fund has gone up, so the income earned can make up for the lost money. This is a good idea, but if you buy more than a dozen funds, all of them will fall, and some investors will be confused. Why did all the funds I bought fall? What if the funds of different sectors fall together? We have prepared relevant content for everyone, and interested friends will take a look!

Why did the fund I bought collectively fall?

When the fund falls collectively, it may be affected by the overall market situation. Take stock funds as an example: the investment direction of stock funds is all stocks. When the stock market is bad, most stocks fall collectively, so the funds that invest in stocks will fall collectively. Therefore, when buying a fund, you can look at the fund's heavy stocks and analyze whether the investment target has prospects. If there is no prospect, then you must redeem the stop loss.

Secondly, it is possible for investors to buy funds in the same sector, and the investment direction of funds in the same sector is not big. For example, they buy five medical funds, the investment direction is similar, and the investment in heavy stocks is similar. When the medical market is not good, there will be a collective decline.

What if the funds of different sectors fall together?

When the funds of different sectors fall together, it shows that the whole fund market is not good. Generally speaking, if you can't take big risks, you should choose to stop in time and don't give up the loss. Going out in time is to prevent greater losses, but if investors are optimistic and don't want to be cut, then you can choose to continue holding or adding positions, just pay attention to the fact that adding positions will increase risks.