What is an innovation fund? How do we understand the daily limit mechanism of innovation funds? Perhaps many people are not very familiar with this, so Bian Xiao specially sorted out why the Innovation Foundation has a continuous daily limit. I hope you like it.

Why does the innovation fund continue its daily limit?

Continuous daily limit, rising to the highest level in the day for two consecutive days. Generally, stocks have price limits, that is, the highest position and the lowest position. The highest position is 10% of yesterday's highest closing price. After the continuous daily limit, will the market outlook of this stock hit a new high, or will it slowly fall? Because many stocks will find that after the last daily limit, the stock is still at a historical low. Of course, some stocks will directly peak.

There are many reasons for the fund to lose money again after returning to its capital, some of which can be simply predicted according to the historical track, and some of which are sudden and hard to prevent. Therefore, it is impossible to accurately judge the subsequent trend of the fund. The fund is risky, so there is the possibility of another loss in the market outlook. Investors should not take chances when investing. Investment is a game with its own desires. If investors choose to continue holding funds, they must be able to bear the profits and losses. If investors choose to sell the fund, don't regret the subsequent results. They should learn from their investment experience and put their energy into new investments.

How can investment funds make money?

1 Select the fixed investment target: The foundation for the fund to make money by fixed investment is based on a good fund. For us, choosing a good fund product is the most important thing. We need to screen and compare the historical performance, maximum retracement, position distribution, investment style, fund manager and other information of the fund to ensure that there is no problem with the fund.

2 determine the fixed investment cycle: for the fixed investment cycle, there are often daily fixed investment, weekly fixed investment, monthly fixed investment and irregular fixed investment. According to statistics, no matter how the market changes, the yield curves of daily fixed investment, weekly fixed investment and monthly fixed investment are almost similar, with little difference in income, and there will be no situation that the higher the frequency of fixed investment, the higher the income. Among them, the monthly fixed investment time is very suitable for the second or third day after the salary is paid, because it can help us to save forcibly and is suitable for friends who have weak self-control and like to spend.

Fixed-time investment refers to investors who choose to buy in the falling market instead of setting a fixed time, which is more suitable for investors who have a better understanding of the fund, have certain research, can pay attention to its market every day, and have certain time and energy.

3 Fixed investment amount: Assuming that the fixed investment period has been determined, the fixed investment amount must be fixed or not. The amount is easy to understand, that is, every investment is the same amount. If it is not fixed, you can increase the investment ratio when the market goes down and reduce the investment amount when the market goes up.

4 save the cost of fixed investment: if we can save more costs in the investment process, it is equivalent to an increase in our rate of return. Here, the transaction costs of the fund are reduced as much as possible, such as redemption fees, sales service fees, and trading commissions of the on-site funds. In addition, the correct choice of fund dividend method is also a skill to make our long-term income rise. Cash dividends can make us feel safe, which not only makes the floating surplus become real money, but also saves our redemption fee. If it is dividend reinvestment, then we can increase the fund share.

Although the dividend of the fund will be ex-dividend, that is, putting the money in the left pocket in the right pocket will not increase our income immediately, but the dividend will be made up after ex-dividend. As long as dividends are stable for a long time, the price drop caused by ex-dividend will be compensated, so it is a long-term positive for us.

5 Take profit in time: It is necessary to know that although the fixed investment of the fund is a long-term investment, there is also a time limit. We must learn to make a profit in the right position. Generally speaking, bull market and bear market are the best nodes for a long investment cycle, especially the China stock market is still in a short-term state, so it is necessary to find the right time to take profits when the bull market comes.

Should the fund continue to hold after returning to its capital?

Whether the fund will continue to hold after withdrawing funds is complicated, and investors can make comprehensive decisions from the following points:

1, investment target. If investors want to get a stable return on their investment, but choose the wrong fund, the fund will fall after buying it. Now, although the fund has returned to its original value, the net value of the fund is still unstable, so it is better for investors to choose to sell the fund. In this way, you won't lose too much money, and you can save your money and change to a fund that is more in line with investors' investment goals. If the purpose of investors buying a fund is to hold the fund for a long time and gain income, then the fund has now risen back and can continue to hold it and gain income.

2. Expectations for the future development of the Fund. If through holding the target fund for a period of time, investors find that the future development expectation of the fund is not optimistic, then it is better to sell the fund directly while withdrawing funds. If investors are optimistic about the future development of the fund, they can choose to continue to hold the fund and wait for the follow-up income.

What are the redemption skills of funds?

The main purpose of fund redemption skills is to obtain greater expected returns and reduce their own losses. Fund redemption skills mainly include the following points.

1, high redemption

Funds and stocks are the same, and the main way to make money is to buy low and sell high, so only by redeeming at a high level will you get more expected returns. If the net value of the fund redemption is lower than the net value of the fund when we bought it, then we will have a certain degree of loss.

Step 2 take up time

The redemption rate of the fund is negatively correlated with the holding time of the fund. The longer the fund is held, the lower the redemption rate is. Conversely, the shorter the fund holding time, the higher the redemption rate. In particular, the fund holding time is less than 7 days, and the handling fee required for redeeming the fund at this time is very high.

3. Fund conversion

If we want to lighten up another fund after redeeming the fund, then we can consider fund conversion at this time, which can reduce our transaction cost and time cost to some extent. But fund conversion can only be carried out in the same fund company. Simply put, the fund you are about to sell and the fund you are about to buy are managed by the same fund company.

Under what circumstances will you lose money when buying a fund?

The reason why the fund will lose money is because the investment target has fallen, that is to say, the investment direction is not good, and the investment direction of the fund is suitable for the type of fund. It should be noted that different fund types represent different risks and returns.

Like money funds or pure debt funds with relatively low risk, these two funds do not invest in the stock market, so the risk is relatively small and it is not easy to lose money. However, like some high-risk fund types, such as stock funds, hybrid funds and index funds, the fluctuation of funds is relatively large and the risks are relatively large.

When the fund market is bad, foundations are more likely to lose money. Take stock funds as an example: stock funds mainly invest in stocks, so when heavy stocks fall, the funds will also fall.

Therefore, when investing in stock funds, we need to pay attention to the fund's heavy stocks. If you are not optimistic about the fund's heavy stocks, you must redeem the fund in time to avoid serious losses.