Many novice investors will be confused when they hear that the fund is adding positions when it is falling. In fact, fund jiacang is to buy funds. So under what circumstances will the foundation fall? The following small series will answer your question.

Under what circumstances will the foundation fall?

Overall market decline: funds are usually affected by the overall market trend. If the whole stock market or bond market falls, the net value of the fund may also fall.

Decline in specific investments in the portfolio: the decline in the prices of some stocks, bonds or other assets in the fund's portfolio may lead to a decline in the fund's net value. This may be due to poor company performance and bad news in the industry.

Redemption pressure: when investors redeem fund shares on a large scale, the fund may have to sell its assets to meet the redemption demand. This may lead to a decline in the fund's net value.

Interest rate rises: If interest rates rise, bond prices may fall, which will affect the net value of bond funds.

What if the fund falls?

When the fund falls, here are some suggestions:

Stay calm: don't make impulsive decisions because of short-term market fluctuations. Remember that the market has ups and downs, and fluctuations are normal.

Regular investment: If you are a regular fixed investor, continuing to invest as planned can spread market risks and buy in a balanced way.

Assess investment objectives: re-examine your investment objectives and time period. If you are a long-term investor, short-term market fluctuations usually do not affect your long-term strategy.

Diversification: Make sure your portfolio is properly diversified among different types of assets, which will help reduce the risk of the overall portfolio.

Monitor fund performance: pay close attention to fund performance and market trends. If the long-term performance of the fund is not good, and you can't reach your investment goals, you can consider reassessing the choice of the fund.

Seek professional advice: If you are worried or uncertain about the decline of the fund, it is wise to seek professional financial advice.

What is important is that investment funds need long-term vision and patience, and don't make blind decisions because of short-term market fluctuations. If you are not sure about your investment decision, you'd better seek professional advice to help you make an informed decision.

Does the foundation drop and add positions at a time?

It is not good for a fund to increase its position once, because when buying a fund, you must be optimistic about the fund to increase your position. If the fund falls once, it will increase its position once. If it falls for five or six days in a row, it will increase its position too frequently, which may lead to heavy losses.

So when buying a fund, it is necessary to analyze the investment direction of the fund. If you are not optimistic, don't add positions once you see the fund falling. This is not good, because there is a possibility that the fund will continue to fall. Some poor funds may fall for a long time as a whole, which may last for about a year. The fund is a risky investment, not to buy it if it falls. You need to analyze the situation before you can buy it.

Why does the fund have to increase its position and not fall?

Because buying a fund when the fund falls will reduce the buying cost and risk to a certain extent, it is necessary to increase the position when the fund falls, but it should be noted that if you choose a poor fund and increase the position when the fund falls, it is likely to suffer heavy losses.

Therefore, when adding positions to the fund, we should be cautious and not add positions at will, because adding positions means increasing its risks. When the market is bad, it will accelerate the loss. It will be better to consider adding positions only if you are very optimistic about this fund.

Skills of buying fixed investment funds on rallies

1, control fund positions.

When the fund falls, you don't have to add positions at one time, you can add positions in batches. For example, if it falls by 5%, it will be added once, and the next drop will be 10%, and so on. If the fund buys in batches every time it falls, it can reduce the cost of holding positions by increasing the holding share.

2. Look at the net value of the fund

Investors can buy according to the trend of the fund's net value when purchasing. For example, when the fund's net value falls to the previous low point and rebounds upwards, they can consider buying moderately.

3. Look at the target of fund investment

For example, stock funds invest in stocks, first look at what kind of stocks to invest in, then look at the trend of the stock market, buy some funds on dips, and wait for the market to rise to make money.

It is worth noting that when the fund falls depends on the situation. Not all funds can add positions. Adding positions means increasing risks because the situation of each fund is different. First of all, it depends on whether the fund has any prospects.

If there is a prospect, you can only consider adding positions when you fall. Secondly, analyze whether the whole fund sector is falling or only this fund is falling. If it is the problem of the fund itself, then don't add positions.