Why is the net value of fund covering positions high? You need to consult relevant information to understand. According to many years' learning experience, it can get twice the result with half the effort to find out the reasons for the high net value of fund covering positions. Let's share the relevant experience of how high the net value of fund cover positions is for your reference.

Why is the net value of fund covering positions high?

There may be several reasons for the high net value of fund coverage positions:

1. The fund manager's lack of investment ability leads to the fund's loss, which is determined by the fund manager's investment, not by the mood of Mr. Market. When the fund manager's investment ability is insufficient, the return on investment of the fund may be lower.

2. fund managers' operational mistakes, such as chasing up and killing down, throwing high and sucking low, etc. , resulting in a decline in the cumulative net value of the fund, which also led to an increase in the net value of the fund's cover position.

3. The operation of the fund is unfavorable, such as the position is too full and unwilling to sell overvalued stocks, resulting in a decline in the accumulated net value of the fund.

4. The market environment is not good, resulting in a decline in the accumulated net value of the fund.

Tips: The above contents are for reference only. If you have related problems to solve, I suggest you consult a professional financial advisor or directly consult relevant institutions.

What is the best choice for the cover fund?

When the fund falls, covering positions can reduce the cost of holding positions, but not all funds are suitable for covering positions. What to choose for the replenishment fund needs to be judged by combining the situation of the market and the fund.

I recommend closed-end funds to cover positions, because the discount rate of closed-end funds is usually large and the effect of covering positions is remarkable.

The common meaning of fund covering position and adding position

In the popular sense, the fund's covering and adding positions is to buy funds again. The main difference between the two is that covering positions is carried out at a loss, while adding positions is carried out at a profit.

When the fund loses money, investors will make up the position in order to spread the cost, that is, buy the fund again, hoping to reduce the cost by buying the fund share. The jiacang is carried out during the fund's rise, that is, investors believe that the fund will continue to rise in the future and get higher returns through jiacang.

Cost fund for paying positions

Covering positions is an investment strategy, which refers to increasing the number of purchases to stabilize costs when the prices of assets such as stocks or funds fall. The cost of covering positions refers to the cost of purchasing each unit of assets after additional investment.

Suppose you buy a fund with an initial investment of 1 1,000 yuan. After buying, the fund price drops, and you decide to invest more in 500 yuan, so the total investment will reach 1500 yuan. If the net value of the fund unit is 1.2 yuan, then your coverage cost is:

Cost of covering positions = (original investment+additional investment)/(original investment+additional investment )× current fund price = (1000+500)/(1000+500 )×1.2 =1.05.

This means that the cost you need to pay per unit fund is 1.05 yuan, which is 50 cents lower than the original investment cost. If the fund price continues to fall, you can continue to invest more until your investment cost reaches an acceptable level.

Fund covering position strategy

The fund's replenishment strategy can be decided according to individual circumstances. Here are some strategies to cover positions:

1. One-time covering position: If the overall trend of the purchased fund is good, but it only falls for a short time, you can choose one-time covering position.

2. Covering positions in batches: Covering positions in batches is suitable for the situation that the overall trend of purchased funds is good, but the decline is large in the short term. Can be purchased in bulk, reducing costs.

3. Chasing high to cover positions: When the fund price is close to the historical high point, you can choose to chase high to cover positions and buy in batches.

4. Stop loss for covering positions: If the overall trend of the purchased fund is not good, or its own risk is high, you can choose to set a stop loss point after covering positions to control risks.

It should be noted that no matter which strategy is adopted, it needs to be comprehensively considered in combination with personal risk tolerance, investment purpose and investment cycle. At the same time, in the process of covering positions, it is also necessary to evaluate and adjust the fund regularly to adapt to the changes in the market.

Why is the net value of fund covering positions high? This is an introduction.