Is it possible for the fund to rise sharply after the plunge?
After the fund falls sharply, it may rise sharply, but it also depends on what causes the fall. If the whole sector is not good and the stock market plummets, then the fund will also plummet. If the subsequent stock market turns around and the stock market rises sharply, the fund will also rise sharply, mainly depending on what stocks the fund invests in.
Generally speaking, funds go up and down. If it keeps falling, the income is not good, and if it falls to a certain extent, it will be closed. Therefore, when the fund has fallen for a period of time or has fallen sharply, the fund manager will generally make a callback. If the fund itself is good and the fund manager is good, it is still possible to have a big rise in the later period.
Should the fund increase or decrease its position when it falls sharply?
The fund's plunge depends on its take profit point and stop loss point, because the fund is unpredictable, and no one knows whether it will go up or down later. If it falls to a certain extent and you are not optimistic about the fund, you feel that there is no market, the fund's income is not good for a long time, or the fund manager changes frequently, then you can consider lightening your position.
If there is a trend that the fund starts to turn around after the sharp drop, the fund's early income is not bad, and the fund managed by the fund manager is also ok, then you can consider adding positions, but the risk of adding positions is still quite large. Investors should consider it clearly when adding positions.