Why are Alipay funds losing money now?
There are many reasons for the loss of Alipay Fund. It is common that the current market of the fund is not good, and the stocks held by the fund are in a state of decline. The rise and fall of the fund is mainly affected by the stocks held. When the stock goes up, the fund goes up, and when the stock goes down, the fund goes down. In addition, the loss of the fund is also related to the relevant policies of various industries, and many news factors are also a reason for the decline of the fund.
Fund investment seems simple, but it is difficult for investors to choose a good fund. After all, there are many funds in the market, and it is still difficult to choose a profitable fund. Secondly, funds also pay great attention to the timing of buying funds, and the timing of buying funds will also affect investors' fund holding income. As the saying goes, "You will buy an apprentice, but you will buy a master." Funds can't go up and down forever, so you must stop profit and stop loss in time.
Didn't the foundation lose any principal?
No, the fund will not lose all the principal at one time. When the net value of the fund falls to a certain extent, it will trigger the liquidation mechanism. After the fund is liquidated, the remaining funds in the fund will be distributed directly according to the share held by investors, so it is impossible for the fund to lose any principal in the end.
The risk of fund investment varies according to the types of investment funds, and investment risk is positively related to investment income. The higher the fund income, the greater the fund risk that investors bear. Therefore, it is best to choose the fund according to your risk tolerance, rather than simply pursuing high returns.