In recent years, with the upsurge of investment and financial management heating up, more and more investors began to flood into the fund market to seek more income. For many novice investors, technical terms such as changes in the fund market and withdrawal of funds are confusing. What is the withdrawal of funds? What is the difference between fund withdrawal and redemption? Here's a brief explanation.
1. What is capital withdrawal?
Fund retracement refers to the biggest decline of fund net value from high point to low point. In other words, when the net value of a fund starts to decline from the highest point and reaches the maximum value, this maximum decline is called fund withdrawal. For example, if the net value of a fund is 10 yuan at the highest point and then falls to the lowest point in 8 yuan, then the withdrawal of this fund is 20%.
Fund withdrawal is one of the important indicators to measure fund risk, and it is also an important factor that investors need to pay attention to when choosing fund products. Because, the greater the withdrawal of funds, it means that the higher the risk of funds, the greater the risk of investors.
Second, the difference between fund withdrawal and redemption
Fund withdrawal and redemption are two different concepts. Although they are all related to the change of fund net value, their meanings and functions are different.
Fund retracement is the biggest decline of fund net value from high point to low point, which is used to measure the risk of fund. Fund redemption refers to the behavior of investors selling their fund shares to obtain income. In other words, investors need to pay attention to the return rate of funds when choosing fund products in order to better control risks; In the investment process, if the fund needs to be redeemed, investors can decide whether to redeem it according to their own needs and market conditions.
Fund withdrawal and redemption are two different concepts, which need to be considered and applied by investors in different situations.
Third, how to deal with the withdrawal of funds?
Fund withdrawal is a common phenomenon in the fund market, and investors need to pay attention to how to deal with fund withdrawal and avoid losses.
Investors need to pay attention to the return rate of funds when choosing fund products. You can know the historical performance and withdrawal rate of the fund by looking at the historical net value trend chart and the public information of the fund, so as to better control the risk.
Investors need to rationally allocate assets according to their own risk tolerance and investment objectives, and reduce the impact of capital withdrawal on the portfolio. Investors can choose different types and styles of fund products through diversification, which can play a certain role in diversifying risks when the market fluctuates.
Investors need to be rational and not blindly follow the trend or panic selling. The fluctuation of the fund market is normal. Investors should hold this fund patiently according to their own investment strategies and ideas, and wait for the market to improve.
Fund withdrawal is an important factor affecting the fund market. Investors need to understand and deal with fund withdrawal to avoid losses. Investors should pay attention to the risk and withdrawal rate of funds when choosing fund products; In the investment process, you need to rationally allocate assets according to your risk tolerance and investment objectives to reduce risks; Investors need to be rational and not blindly follow the trend or panic selling. Only in this way can we get more benefits in the fund market.