The profit from fund investment is mainly to earn the price difference through changes in the net value of the fund. Of course, fund dividends are also a way for the fund to obtain income, but often the time for fund dividends is not fixed, and only when the fund makes a profit will it be profitable. Will pay dividends. When the economic situation is not good, many funds are in decline. So what will happen if the fund keeps falling? Let’s find out together.
What will happen if the fund keeps falling?
If the fund keeps falling, there may be two situations. One is that the fund keeps falling, and when it falls to a certain level, , the foundation is liquidated. When the net value of a fund unit falls below 0.3, it will be liquidated. The second is that the fund has been falling. As time goes by, the fund may also correct and rise. When the net value of the fund unit rises to the net value of the investor's purchase, then the investor can recover the loss and achieve a capital preservation situation. ; If the net value of fund units rises higher than the net value purchased, it will be profitable for investors.
In general, when the fund falls, if you leave it alone, it will either fall to the point of liquidation, or it will maintain the status quo or rise in the later period. Under normal circumstances, even if the fund is liquidated, investors can get back part of their funds. Fund liquidation is the liquidation of all fund assets, and the resulting funds are often distributed according to the investor's investment ratio.