However, it should be noted that it is also risky to add positions after the fund loses money, and it will increase the risk. If the fund market has been in a bad situation, then adding positions will only increase losses. Therefore, when choosing a fund to add positions, we must be optimistic about the fund and choose a promising fund to add positions.
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Can the fund add positions on dips?
Funds can increase their positions on dips. Buying positions on dips can buy more shares at a lower price, and buying when the fund's net value is low can reduce the buying cost, and investors will bear less risks. However, when buying a fund, we must analyze it from many aspects and think that the fund begins to rebound and only chooses to add positions when it rises.
When the fund loses money to a certain extent, it is necessary to stop adding positions, because the rise and fall of the fund is unpredictable. If you blindly add positions on dips and choose a bad fund, you will only lose more and more. Therefore, when buying a fund, you should set a stop loss point. When the fund reaches this stop loss point, you should stop loss to avoid greater losses.