The reasons for the fund's plunge are: 1, and the company's valuation is too high. The valuation of a fund company is to value the fund's funds and debts at a certain price. If the fund company is overvalued, the greater the risk. 2. Encounter unexpected events with great impact. Fund investment depends on entering the market. If there is a big emergency in the financial system, it will directly affect the fund. 3. Affected by market trends. Funds are mainly stock funds, and most stock funds invest in stocks. Therefore, if the stock market plummets, the probability of the fund plummeting will also increase.

According to different standards, securities investment funds can be divided into different types:

1, which can be divided into open-end funds and closed-end funds according to whether the fund units can be increased or redeemed. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.

2. According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.

3. According to the difference of investment risk and income, it can be divided into growth fund, income fund and balanced fund.

4. According to different investors, it can be divided into four categories: bond fund, stock fund, money fund and hybrid fund.