Fund investment is a popular investment method now, and the risk of fund is much lower than that of stock. Fund investment usually belongs to long-term investment. For funds, the longer the investment time, the lower the actual investment cost may be. So if the fund has been losing money, will it be cleared? Let's get to know each other.

Has the foundation been cleared of losses?

I won't.

The so-called zeroing is the complete loss of the fund principal. Under normal circumstances, only when the net value of the fund is 0 yuan will the principal of the fund lose money, but in most cases, the net value of the fund will not be zero, so there is no situation that the fund will return to zero if it keeps losing money. However, in fund investment, funds that have been losing money may be liquidated. Fund liquidation means realizing all fund assets and distributing the proceeds to fund holders.

Of course, fund liquidation needs to meet certain conditions. If the net asset value of the fund is less than 50 million yuan for 60 consecutive days or the number of fund share holders is less than 200 for 60 consecutive days, the fund manager will announce the termination of the fund after the approval of the China Securities Regulatory Commission. In addition, when the fund falls below the level of 0.3 yuan, it will also enter the process of automatic liquidation.

Generally speaking, even if the fund investment has been losing money, it is unlikely to clear the position, but it is possible to liquidate. Zero liquidation can't get back any principal, but capital settlement can get back some funds, but it's still a loss for investors.