What is a fund?
Before discussing the meaning of negative fund and positive fund, we need to know what a fund is. In terms of investment, funds are investment tools jointly funded by multiple investors and managed by professional fund managers. The assets of the fund consist of different securities purchased by managers, including stocks, bonds and money market instruments. People who invest in funds may be stock investors, bond investors, or investors who want to reduce risks by diversifying their investments.
What is a bad fund?
A negative fund refers to a specific fund or market, and there will be unfavorable news or events, which will lead to a decline in the stock price. Generally speaking, the negative performance of the fund may be the decline of a company, the bankruptcy of the endorsement bank and other major events or political instability. In addition, the decline in economic data and policy adjustments may also lead to negative fund performance. These negative news usually cause investors to lose confidence and make the fund price fall.
Fund bearish is usually related to the stock market decline or market weakness. If there are multiple fund negative events, the whole market may fall into a bear market. In this case, investors may sell all their stocks, which will lead to more selling and further aggravate the market decline.
What is a good fund?
Good capital refers to good news or events that will lead to a rise in stock prices. The emergence of favorable funds is related to market forces and other factors. Many fundamental news such as financial statements show that the company's income is rising and its performance is very good, which will attract investors' attention and interest. At the same time, good economic data, policy support or many important market events, such as mergers and acquisitions, may attract investors' attention, prompt them to buy in the market, and further push up the fund price.
The positive impact of the fund
The emergence of favorable funds may attract more investors, who tend to buy funds or stocks that perform well and are favorable. This will lead to a rise in share prices, which will benefit these investors. However, if the price of a fund or stock is already too high, some investors think they have missed the opportunity to buy, or they may like to wait for other opportunities to continue to pay attention.
Negative influence of the fund
If negative events of funds occur frequently, the market may fall into a bear market. In a bear market, investors may lose confidence and sell stocks, which will lead to a decline in the stock market price. The negative interest rate of the fund is a serious problem, because it will lead to a sharp drop in the stock price, thus weakening people's confidence in the stock market and their interest in intervening in the market.
Positive and negative solutions of funds.
If investors want to keep the balance between good and bad funds, they should keep an eye on the movement of funds in order to better understand the changes in the whole market. In order to prevent the collapse caused by negative events, investors can choose low valuation funds. Generally, these low-valued funds have low volatility and low yield, which is a relatively safe investment strategy.