Funds have always been a profitable tool to help investors increase their wealth, but the expected returns are often accompanied by risks, and funds will also lose money, which is the last thing investors want to see. So in the process of fund investors, under what circumstances does the foundation lose money? Let's talk about the reasons for the fund's loss today.

Under what circumstances will the fund lose money?

First of all, we must understand that different types of funds have different risks and different expected income opportunities. Some funds are unlikely to lose money, while the prices of some funds fluctuate greatly. First of all, we must understand the nature of the fund we invest in.

1. For low-risk or low-risk capital preservation funds, the possibility of fund losses is very small, and it is generally a long-term stable appreciation. If there is a loss, the market price may drop sharply or the fund company is poorly managed, which may lead to liquidation.

2. For some medium and high-risk funds, it is mainly because they buy high and sell low. For example, if you buy when your net worth is high and sell when your net worth is low, you will lose money.

3. In addition to the objective reasons of the above market price, investors' excessive fear will also cause investors to suffer losses. Faced with normal market fluctuations, they can't adjust their mentality and quickly turn floating losses into actual losses.

Another subjective reason for investors is that they have not made a thorough analysis of the market. When they lose money, they can stick to it, see the rebound and sell it once. In fact, maybe the market will continue to rise later. After all, in the investment market, the cost of time and capital is also a loss.

The above content about when the fund will lose money is here, for investors' reference only, and I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.