Although the risk of fund investment is not as high as that of stocks, there is also the possibility of losing money, especially if you buy an active fund in one go. Many investors know that if the net value of a fund falls, you cannot blindly stop losses. Properly adding positions can recover losses. So how do you add positions when a fund loses money?

1. Determine the reasons for fund losses. One of the principles of fund investment is to stop profits and stop losses, especially for fixed investment funds. But this does not mean that the fund must continue to add positions if it loses money under any circumstances, and there is also a need to stop losses. Investment funds actually hand over their own funds to professional fund managers and teams for management and operation. The fund managers use the funds to invest in financial instruments such as bonds and stocks to obtain expected investment returns. Therefore, after a fund suffers a loss, it needs to be judged whether it is due to short-term fluctuations caused by market factors or due to the low level of active investment by the fund manager. Investors can refer to the market composite index or performance benchmark for the same period. If the fund suffers a loss but still outperforms these two reference indicators, then the fund loss may not be closely related to the fund manager. Most of it is caused by market reasons. Once the market Once it stabilizes and recovers, the net value of the fund may also recover quickly. On the contrary, it means that the fund needs to reduce its positions and stop losses.

2. How to increase positions when a fund loses money. When a fund suffers a loss, fund fixed investment is a way to increase positions by diluting investment costs and exchanging time for space. Fund fixed investment is not just about investing fixed funds on a regular basis, especially after losses occur. Investors with certain experience are best to choose manual fixed investment, and adjust the amount and frequency of fixed investment in a timely manner according to the principle of buying more when prices fall and buying less when prices rise. I hope the above information on how to add positions when the fund loses will be helpful to everyone. Warm reminder, financial management is risky, so investment needs to be cautious.