Many people may think that the trend of funds generally follows the fluctuation of the stock market. When buying at a low level, you can buy more stocks at a lower price, and when the fund rises, there will be gains. So what if the fund falls? The following small series will answer your question.

What if the fund falls?

Funds are increasingly uncertain that buying is a good thing, because when a fund falls many times in a period of time, there are generally two situations. One may be a sharp correction in the market, and the other may be a mistake in the investment strategy of fund managers.

If the fund manager's investment strategy is wrong, resulting in fund losses, the fund scale is getting smaller and smaller, and when it falls to a certain extent, it will face the risk of liquidation. At this time, you can still buy, so quick redemption and timely stop loss are the most important.

If the market declines for a long time, the number of times to cover positions is increasing, and money is constantly being made, it may affect the daily expenses, easily affect the mentality of investors, and there is no hope that it will hit confidence.

Redeem when you fall to the lowest point, then all the previous capital investment is in vain, that is, the appropriate small leek is cut, which means a lot of money is lost.

But it doesn't mean that you can't buy a fund if it falls, but you should have a certain judgment on the future market of the fund. If you are optimistic about the future prospects of this fund, you can buy it, but you can also operate according to your own ability.

Which dividend distribution method is better for the fund?

There are two main ways of fund dividend: cash dividend and dividend reinvestment. Different investors have different investment needs, so the appropriate dividend distribution methods are different:

1, cash dividend. Cash dividend refers to the direct payment of the fund to investors in the form of cash when the fund pays dividends, so that the investors' income can be preserved. Cash dividends can lock in a part of the fund income for investors while keeping the existing fund share unchanged, so that investors can redeem certain investment income without paying redemption fees. Investors who are not optimistic about the fund's follow-up trend or just want to obtain stable income are better to choose cash dividends.

2. Dividend reinvestment. Dividend reinvestment means that when the fund pays dividends, it directly buys the fund to be distributed to investors according to the new net value of the fund, so as to increase the fund share held by the basic people. Investors can reinvest in the share of the fund through dividends without paying subscription fees. Investors who have good expectations for the follow-up trend of the fund or intend to hold the fund for a long time, it is best to choose this dividend method.

After the fund pays dividends, the net value of the fund will fall, and the specific extent of the decline is determined by the dividends of each fund share. However, as an indicator to measure the fund's investment performance, the accumulated net value of the fund will not be reduced because of the fund's dividends. Fund dividends are just one of the means for fund managers to adjust their positions and lighten their positions. Whether it is the funds obtained from dividends or the fund shares obtained from reinvestment after dividends, they are investors' own book assets and will not harm the interests of investors.

Which is easier to make money, buying funds or buying stocks?

It is easy to make money by buying funds and stocks, but it is more difficult to make a lasting profit. Relatively speaking, buying funds is easier to make money than buying stocks, because the risk of funds is relatively small and the fluctuation is small. Moreover, this type of fund, such as money fund, is basically risk-free and the expected return is relatively stable. A normal stock has a daily limit of 10%, the stock price fluctuates greatly, the probability of making money is relatively small, but the expected return is relatively high.

The fund has lost 50%. Can I get my principal back if I stick to it?

If the fund loses 50%, it depends on whether it can return the principal. If the purchased fund loses 50%, the loss will be more serious. It is necessary to think about what caused it to persist for so long. This is definitely a loss-making process, and the fund will not fall so much in a short time.

It is necessary to analyze the causes of fund losses and then prescribe the right medicine. If it is because of the fund itself, such as the fund manager's misoperation, or the fund itself is in a bad state, then don't insist. It is best to redeem the stop loss in time, otherwise it will fall to the bottom and the loss will be more serious.

If it is because investors bought the wrong place, we assume that the fund's early income is very good, just because the increase is too high, investors just bought at the highest point, or because the market is not good, most funds are falling, but there are signs of rebound, so we can continue to hold them and wait for the fund to rise to make money, but the probability of returning to the capital in the short term is not great, and it needs a long-term accumulation process.

Because the fund has lost 50%, it needs to increase more to return to its capital. The calculation formula of capital increase is: capital increase =1(1-loss range)-1, that is, when the investor loses 50%, capital increase = 1/.

It is difficult for a fund to rise 100% in a short time, and it takes a long time. However, if you add positions during the decline of the fund, it may accelerate the recovery, but adding positions will aggravate the risk of the fund. If you make a mistake, the fund is still falling, and it is likely to suffer heavy losses.

Therefore, be cautious when adding funds. Unless you are very optimistic about this fund, it is not recommended to add positions. In addition, you should know your ability to take risks. If there is no ability to take risks, it is generally recommended to redeem the stop loss.

How to save money by buying a fund?

1, subscription fund is more cost-effective than subscription fund. The subscription rate of the same fund at the time of issuance is different from that after the closed period, in which the subscription rate is generally around 1%, and the subscription rate is between 1%- 1.5%.

2. Online shopping funds can enjoy preferential handling fees. Now all banks have launched online fund business, and banks have certain preferential policies for online fund transactions, such as free online self-service fund account opening, and online subscription and purchase of open-end funds can enjoy commission concessions. This is also one of the key points of how to save money when buying funds.

3. There is no subscription fee for reinvestment fund dividends. In order to encourage investors to continue to buy funds, fund companies do not charge subscription fees for dividend reinvestment, so investors can not only save subscription fees, but also play a compound interest effect and improve investment income.

4. Clever use of fund conversion business. At present, some large-scale and powerful fund companies have launched the mutual conversion business of open-end funds, and the conversion fee is given preferential treatment. In the period of market fluctuation, investors can convert high-risk stock funds into low-risk bond funds or monetary funds, which can not only avoid market risks, but also save money, which is the focus of how to save money when buying funds.