1. According to China Finance Network, the fund market is affected by many factors, including macroeconomic factors, political factors and company performance. These factors lead to market fluctuations, thus reducing the value of the fund.

2. The fund industry is facing fierce competition. In order to compete for investors and market share, many fund companies reduce the rate of return or increase management fees, which will have a negative impact on the performance of the whole industry and lead to the decline of funds.