Why did the funds plummet?
1 The overall market plummeted.
Recently, the market has been in a downward trend, and most of the fund investments are stocks, so the fund is also in a continuous downward trend. It's just that some funds may have failed to fall and outperform the broader market because they have allocated heavy stocks.
2 The fund is in the callback stage.
Money can't keep going up. At present, the valuations of many funds are relatively high, so they are currently in the callback stage, and the fund market is also falling continuously. Like new energy funds, most new energy funds have extremely high valuations and are now basically in the callback stage. Only when the valuation reaches a general state can the funds rebound and rise.
The fund's heavy investment bid fell sharply.
The rise and fall of the fund is related to the investment target of the fund. The investment target fund rises and the investment target fund falls. Therefore, when investors buy funds, it is best not to buy the same type of funds. Otherwise, if an investment target falls, then the held fund is in a falling state, and different fund types have different investment targets.
Is the fund plummeting to sell or continue to hold?
Whether the fund falls sharply is to sell or hold, mainly depends on the reasons for the decline of the fund and its future development prospects. If the future development prospect of the fund is very good, then when the fund falls, the investment cost can be shared by adding positions to reduce the rate of return. When the fund callback is developed, it will be able to return to its original value or even make a profit within a certain period of time. On the other hand, the fund you hold may fall for a while, or you are not optimistic about its future development, so you can choose to sell it.
Fund investment is a risky investment, so it must be comprehensively analyzed when trading, and don't blindly add positions to chase up and down. At the same time, buying a fund needs to consider its own risk tolerance. Funds are more suitable for radical investors.