For example, if an investor buys a fund in 500 yuan, then the fund rises to the highest point in 600 yuan and then falls to the lowest point in 400 yuan, then 600 yuan to 400 yuan is the biggest possible loss of the fund.
The maximum withdrawal rate is: (400-600=-200)/600=-33.3%.
Generally speaking, the greater the maximum withdrawal rate, the more difficult it is to return the money.
If the decline is large, the increase will be even greater if you want to return to your capital.
For example, if it falls by 30%, then the increase needs to reach 42.86% to recover the capital, which is relatively difficult to achieve.
In theory, the lower the maximum withdrawal rate, the better, because the maximum withdrawal rate is also proportional to the risk.
The smaller the maximum withdrawal rate, the stronger the risk control ability.
Where is the maximum withdrawal rate of the fund?
There are many ways to check the maximum withdrawal rate of a fund. Investors can log on to the official website of the corresponding fund company and find the information page of the fund. The historical maximum withdrawal rate can be seen from the historical net value of the fund.
On the fund information page of the fund trading software, you can also roughly calculate the historical maximum withdrawal rate of the fund through the historical net value trend chart.