Why did the fund fall?
1, the market fluctuates. The market is constantly changing and influenced by various factors, such as economic development and policy changes. These factors will lead to changes in the relationship between supply and demand in the market, thus affecting asset prices. For example, when the economic growth slows down, the performance of the stock market will weaken, so the net value of stock funds with stocks as the main investment object may fall, and when the market interest rate falls, the income of the money fund will also fall, which will lead to the decline of the net value of the money fund.
2. Redemption pressure. A large number of redemptions by investors will lead to the fund selling some assets to raise cash, thus affecting the fund's net value. For example, if investors collectively redeem a fund, the fund will face greater redemption pressure and need to sell assets at a discount to meet liquidity, which may lead to a decline in the net value of the fund.
What are the advantages of the fund?
1, spread the risk. The correlation between different types of assets is weak. When the prices of some assets fall, the prices of other assets may rise or remain stable, thus offsetting some losses. By purchasing funds, investors can participate in various investments in different markets and assets, thus spreading risks.
2. Professional management. The fund is managed by a professional fund manager, with rich market investment experience and professional analysis ability. They will choose high-quality investment targets and opportunities according to market conditions and fund investment objectives, so as to improve the income level and be more professional than direct investment by investors.