What are the reasons for the continuous decline of funds?
1, market conditions
Market quotation is an important factor for the continuous decline of some funds, which usually has a great influence on investors' investment confidence. When the market is depressed, investors' investment sentiment is relatively low, and even panic occurs, which leads to a large number of products sold, which will further reduce the fund.
2. The fundamentals are very poor
Fundamentals generally refer to the operating conditions and profitability of fund companies. When the performance of the fund company to which the fund belongs is poor and in a state of decline, its profitability is poor, which may lead to the continuous decline of the fund.
3. Investment level of fund managers
Because funds are invested by fund managers, fund managers play a very important role in the process of fund investment. If the fund manager's investment level is low, his performance is poor and his work experience is insufficient, it is likely to lead to the continuous decline of the funds he manages.
What should investors do?
1, covering positions
If investors think that the fund may rise in the future, they can choose to make up their positions, continue to invest and increase their holdings in the process of the fund's decline, share the cost of holding positions and spread risks.
2. Fund conversion
Investors can also choose to switch funds and wait for the new fund to rise to make up for the previous losses. Only the premise of fund conversion is that two funds must belong to the same fund company and both funds have the function of fund conversion.
3, high throw and low suction
Generally, the decline of funds will fluctuate slightly, rather than plummet, so investors can make use of this feature to make small-band high-throwing and low-sucking operations and earn a certain price difference to make up for the previous losses, but this requires investors to have strong and accurate analysis ability.
Step 4 sell stop loss
The fund continues to decline, generally because the quality of the fund is not high. Investors can choose to sell the fund stop loss in time to prevent the subsequent continuous decline from causing huge losses.