Interpretation of the fund

Stock fund: fund (stock type) means that we give money to fund companies to buy stocks. Then why don't we buy it for the fund company? Because the professionals of fund companies have a higher level of stock trading than ordinary investors (this is the most commonly used temptation word when fund companies persuade everyone to buy funds).

Bond fund: buying a bond fund is equivalent to giving money to a fund company to buy bonds. Why not buy it yourself? Because fund companies have a lot of money and are institutions, they can buy many corporate bonds that are not open to ordinary investors, and the income is much higher than the national debt we can buy.

The fund will not lose all at once;

Theoretically, the fund can lose all, but it won't lose all at once. If the number of fund share holders is less than 200 for 60 consecutive days or the net asset value of the fund is less than 50 million yuan, the fund manager shall report to the China Securities Regulatory Commission in a timely manner; If the above situation occurs for 20 consecutive working days, the fund manager shall explain the reasons and submit the solution to the China Securities Regulatory Commission. Generally speaking, if the net value of the fund continues to decrease, it may trigger the liquidation clause. However, funds are generally relatively large and will not suddenly touch the liquidation clause.

There is no limit to the fund's success. When the market is good, doubling is common. When the market is bad, the general net value falls by 0.3 to redeem the fund. In other words, the fund is only losing money in theory, and 70% of the losses will be liquidated, at most 70%.