The profit model of funds is the same as that of stocks, which is to earn profits by buying at low prices and selling at high prices. Therefore, when buying a fund, it is generally better to buy at a lower point. Once the fund rises, the more profits you can make later.

Why do funds lose money when they buy low and sell high?

The fund still loses money when it buys low and sells high. This may be because investors operate more frequently. Although sometimes it buys at a low price and sells during the rise, the fund will have procedures for every transaction. Fee, and if the holding time is sold within 7 days, the handling fee will be charged at a rate of 1.5%, so the total amount will still be in loss after the investor buys at a low point and sells at a high point, that is Because the selling fee is too high, the selling fee is even higher than the profit capital.

If the fund is bought and sold after the low point and still loses money, it may also be because the investor did not buy the low point, or the fund continued to fall, resulting in negative returns, and there was no increase in positions. To spread the cost evenly, so even if the fund is sold at a high point, it is still at a loss. To put it simply, if the fund loses 10%, it needs to rise to more than 10% to make a profit. If it is only 10%, it will most likely be a loss. Therefore, if you want to recover your capital quickly after buying a fund, you need to increase your position during the decline. In this case, the fund does not need to rise to 10% to recover your capital.

When investors buy funds, not every time the fund falls, it will be the fund's low point. The fund's low point needs to be analyzed from many aspects. Generally speaking, it can be seen directly from the fund's performance profile. To see the fund's rise and fall in recent months, you need to look at the fund's low points from the overall performance of the fund.