Funds are generally issued by fund companies, but funds can be purchased directly from banks and third-party distribution platforms.

In order to attract users to buy, many consignments are similar to activities such as buying a fund for 10 yuan. So, if you buy a fund for 10 yuan, you will not lose all your money?

Let’s find out together with you below.

1. Calculation method of fund expected income When an investor subscribes for a fund, the fund company will convert it into corresponding fund shares based on the net value of fund units on the day of subscription.

The net value of a fund unit can be understood as the price of a single fund.

Fund shares subscribed = purchase amount * (1-subscription fee rate) / net value of the fund on that day.

The same is true for fund redemption. Redemption amount = fund share * net value of fund unit - redemption fee.

For example, the net fund value of a certain fund product on March 9 is 1 (that is, the price added to each fund is 1 yuan), and the subscription fee is 0.

If an investor subscribes for the fund product for 10 yuan, it will be converted into 10 fund shares.

The net value of a fund unit is updated every trading day. If the net value of the fund drops to RMB 6 months later, the value of the 10 funds held by the investor will also drop to RMB 5, resulting in a book loss of RMB 5.

2. You won’t lose everything if you buy a fund for 10 yuan. Theoretically, any fund product has the possibility of losing money, but the probability of losing everything if you buy a fund of 10 yuan is extremely low.

If the net value of the fund continues to decline, the fund manager will adjust the investment strategy in a timely manner.

Taking the above example as an example, even if the net value of the fund drops to the point that as long as you do not apply for redemption on the same day, the loss will only be on the books.

Once the net value of the fund rises above 1, the losses will disappear.

In addition, the net value of the fund generally will not fall to 0 or even a negative number. Fund losses to a certain extent will trigger liquidation conditions, and investors' principal will not be completely lost after the fund is liquidated.

I hope the above content will be helpful to everyone if you buy it for 10 yuan and the foundation will not lose all your money.

Warm reminder, financial management is risky, so investment needs to be cautious.