First, is the decline in the net value of the fund a loss?
The decline in the net value of the fund is equal to the investment loss, which only shows that the expected return of the fund on that day is negative. The investment period of the fund is generally more than one day, so whether it is actually a loss can not be judged by the one-day decline in the net value of the fund.
If the net value of the fund when investors buy it is higher than the net value of the fund on that day, then redeeming the fund shares at this time may lead to losses. If the net value of the fund when they buy is lower than the net value of the fund on that day, even if the net value of the fund falls on that day, it is still profitable.
Second, the reasons for the decline in the net value of the fund
1, market fluctuation
Fluctuation belongs to the normal state of investment market, especially hybrid funds and equity funds, which fluctuate greatly themselves, and the net value of funds will also change with market fluctuations.
2. Fund dividends
Fund dividends need to distribute a part of the net value of the fund unit to investors in cash, so the net value of the fund usually falls or even plummets on the day of fund dividends.
Don't worry about the decline in net value caused by fund dividends. The total assets of investors have not decreased after the fund pays dividends.
3. Improper fund management and operation.
For example, the allocation of non-performing assets of fund managers and the adjustment of investment strategies of fund managers may lead to the decline of fund net value. If investors find that the net value of the fund continues to decline, they need to pay attention to the shrinking size of the fund. If the size of the fund shrinks to a certain standard, there may be liquidation risks.
The above content about whether the fund's net value will lose money, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.