Nowadays, more and more people invest in funds. Many people choose to buy funds and make fixed investment, which not only saves time and effort, but also reduces the risk of loss. Recently, many netizens asked, will the fund's fixed investment lose all its principal? What does it mean if there is a loss? What are the main aspects? Today, Bian Xiao has compiled some fund-related knowledge for everyone. Let's have a look!

Reasons for the loss of fund's fixed investment

The biggest charm of the fund's fixed investment is to dilute the cost and form a compound interest effect. It doesn't mean that the fund will definitely make money and the principal will be lost. There are three main reasons for the loss of the principal of the general fund. One is fixed investment time, which requires long-term investment; Second, the trend of fund theme, stock funds are the most risky; Third, the impact of market conditions, in a bear market, the probability of losing money is relatively large.

Compared with one-time purchase of funds, the risk of fixed investment of funds is less, which is suitable for long-term investment and has the advantages of compound interest effect, average investment and diversified investment risks. However, this does not mean that the fixed investment fund will not lose money. We must first understand this concept. Equity funds are the most risky, while money funds and bond funds are the least risky. You can choose the appropriate fund type according to your own risk assessment.

Will the fund lose money if it explodes?

If people who often invest in funds know about short positions, it may be good for businessmen, but it is bad for investors.

Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. In other words, if the fund bursts, it will lose money. When the market situation changes greatly, if most of the funds in the investor's margin account are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to explode the position because of the leverage effect of margin trading.

Theoretically, it is possible to break out, but the probability is not great, because the foundation has a series of risk control measures. If the fund bursts, it means that the risk control is too bad. At present, there is no short position risk in Public Offering of Fund and most private equity funds, and only a few leveraged private equity funds have short position risk.

The fund can make fixed investment during the closed period.

Fixed fund investment refers to investing in a designated open-end fund at a fixed time and with a fixed amount. This investment method is similar to the bank's zero deposit and lump sum withdrawal, and the most important thing is the stable income, which has attracted the attention of countless investors. Fixed investment of funds is a common way of fund investment. If we can insist on long-term fixed investment, we can effectively share the investment cost. Many people don't know much about this, so the fund can make a fixed investment during the closed period.

Then the fund can make fixed investment during the closed period, because fixed investment refers to investing in the designated open-end fund at a fixed amount at a fixed time. The fund cannot be redeemed during the closed period, but it can continue to buy, so it can make a fixed investment during the closed period.

The fund is profitable in the closed period. Generally speaking, the fund will announce the net value of the fund unit once a week through the fund announcement of the fund company during the closed period, in which the income of the fund can be seen. If the net value of the fund rises, it will generate income.