How to calculate the maximum withdrawal rate of funds?
Maximum withdrawal rate = 1- minimum net value/maximum net value * 100%
For example, suppose that the net value of the fund was 2 yuan when we bought it, and the lowest point of the fund's net value in the past year was 1.6 yuan, then we can get that the maximum withdrawal rate of the fund is 20% after substituting into the formula.
What is the highest withdrawal rate of the fund?
For investors, the lower the withdrawal rate of funds, the better, which can effectively reduce the risk of fund investment. The maximum withdrawal rate of the fund refers to the maximum expected withdrawal range of the fund's net income within a period of time. The lower the value, the smaller the withdrawal range and the higher the fund income. When investing in a fund, investors can also observe the income level and the possibility of loss of the fund in similar funds from the data of the fund.
The maximum withdrawal rate is a key index of a fund, which reflects the fund manager's ability to resist risks.