Does the fund decline have anything to do with the market? _ What should we do when the fund falls?

Many people may think that the trend of funds generally follows the fluctuation of the stock market. When buying at a low level, you can buy more stocks at a lower price, and when the fund rises, there will be gains. So is the decline of the fund related to the market? The following small series will answer your question.

Is the decline in funds related to the market?

The performance of funds usually has a certain relationship with the market. The value of funds is usually influenced by the overall market situation, the trend of related asset classes and the investment decisions of fund managers. When the market falls, the net value of the fund is often under some pressure.

What if the fund falls?

Keep calm: It is important to keep a calm and rational attitude when the fund falls, and don't operate blindly because of short-term fluctuations. The decline in the value of the fund does not mean that the prospects are necessarily bad, and sometimes the decline provides better buying opportunities.

Evaluate your investment goals and time: Re-evaluate your investment goals and time to ensure that this decline will not have a serious impact on your investment plan. If the goal is long-term investment, then the short-term decline may be only a temporary fluctuation.

Fixed investment strategy: If the fixed investment (fixed investment) strategy is adopted before the fund falls, you can continue to insist on fixed investment. By investing the same amount on a regular basis, you can diversify your investment costs and buy more stocks even when they fall.

Diversification: If you have diversified investments in different funds or different asset classes, you can evaluate the performance of each fund and adjust the portfolio allocation according to your own judgment. Ensure that the portfolio has a certain degree of diversification to reduce the risk of a single fund or asset.

Professional advice: If you don't know enough about the reasons and effects of the fund decline, you can consult a professional investment consultant or fund manager for professional advice and opinions. They can provide targeted suggestions according to market conditions and fund characteristics to help formulate more sensible operation strategies.

What if the fund falls?

Funds are increasingly uncertain that buying is a good thing, because when a fund falls many times in a period of time, there are generally two situations. One may be a sharp correction in the market, and the other may be a mistake in the investment strategy of fund managers.

If the fund manager's investment strategy is wrong, resulting in fund losses, the fund scale is getting smaller and smaller, and when it falls to a certain extent, it will face the risk of liquidation. At this time, you can still buy, so quick redemption and timely stop loss are the most important.

If the market declines for a long time, the number of times to cover positions is increasing, and money is constantly being made, it may affect the daily expenses, easily affect the mentality of investors, and there is no hope that it will hit confidence.

Redeem when you fall to the lowest point, then all the previous capital investment is in vain, that is, the appropriate small leek is cut, which means a lot of money is lost.

But it doesn't mean that you can't buy a fund if it falls, but you should have a certain judgment on the future market of the fund. If you are optimistic about the future prospects of this fund, you can buy it, but you can also operate according to your own ability.

Which dividend distribution method is better for the fund?

There are two main ways of fund dividend: cash dividend and dividend reinvestment. Different investors have different investment needs, so the appropriate dividend distribution methods are different:

1, cash dividend. Cash dividend refers to the direct payment of the fund to investors in the form of cash when the fund pays dividends, so that the investors' income can be preserved. Cash dividends can lock in a part of the fund income for investors while keeping the existing fund share unchanged, so that investors can redeem certain investment income without paying redemption fees. Investors who are not optimistic about the fund's follow-up trend or just want to obtain stable income are better to choose cash dividends.

2. Dividend reinvestment. Dividend reinvestment means that when the fund pays dividends, it directly buys the fund to be distributed to investors according to the new net value of the fund, so as to increase the fund share held by the basic people. Investors can reinvest in the share of the fund through dividends without paying subscription fees. Investors who have good expectations for the follow-up trend of the fund or intend to hold the fund for a long time, it is best to choose this dividend method.

After the fund pays dividends, the net value of the fund will fall, and the specific extent of the decline is determined by the dividends of each fund share. However, as an indicator to measure the fund's investment performance, the accumulated net value of the fund will not be reduced because of the fund's dividends. Fund dividends are just one of the means for fund managers to adjust their positions and lighten their positions. Whether it is the funds obtained from dividends or the fund shares obtained from reinvestment after dividends, they are investors' own book assets and will not harm the interests of investors.

Can Alipay's fixed investment stop at any time?

The fixed investment of Alipay Fund can be stopped at any time. From the above, we can know how to stop the fixed investment of the fund. General funds are more suitable for fixed investment: index funds, stock funds, hybrid funds and other high-risk types, so the purpose of fixed investment is to spread risks, and these types of funds are relatively volatile, risky and relatively high, which are more suitable for fixed investment.

For example, money funds and bond funds have low risks and small fluctuations in funds, and there is little difference between one-time investment and fixed investment. If you want to wait until you get paid every month, but don't want to take a big risk, then money funds and bond funds can also be fixed investment funds.