1. Investment risk: the fund investment is risky, which may lead to the decrease of the fund net value due to the decrease of the asset price invested by the fund. For example, when a fund invests in the stock market, when the stock market falls, the net value of the fund will also fall.
2. The asset-liability ratio is too high: fund managers may adopt a leveraged investment strategy, which means that they will borrow money to invest in order to obtain higher returns. If the leverage ratio of the fund is too high, when the investment loses money, the asset-liability ratio will easily exceed 100%, resulting in a negative fund net value.
3. Fund fraud: Some unscrupulous fund companies may engage in fraud, such as false propaganda, fictitious fund performance, etc., resulting in losses for investors and even negative fund net value.
In short, the fund fell to negative figures, which was the result of investment risk, high leverage ratio and fraud. Investors should fully understand and master the relevant risks when investing, and choose funds with controllable risks to invest.