What risks should I pay attention to when buying a fund?
1, market risk. Market risk refers to the risk of market fluctuation due to macroeconomic, policy changes, industry cycle and other factors. When the market is depressed or the market is not good, the net value of the fund will also be affected. Therefore, investors should pay attention to the overall market situation when buying funds, and avoid buying when the market situation is unfavorable.
2. Risk of improper selection of fund managers. The ability and investment strategy of fund managers have a direct impact on the performance of funds. If the fund manager has insufficient investment experience and poor strategy, it may lead to fund losses. Investors should pay attention to the background and past performance of fund managers and give priority to funds with stable management team and good performance.
3. Liquidity risk. Fund liquidity risk usually occurs in the market uncertainty, for example, when the fund faces huge redemption, the fund may be forced to sell assets in order to maintain liquidity, resulting in a decline in the fund's net value.
What if the fund loses money?
1, wait and see. If investors have confidence and patience in their own funds and markets, don't blindly follow suit. Floating losses are just figures on the books, and selling is the real loss. If investors are not in urgent need of this capital turnover, they can choose to wait and see and wait for the market to pick up.
2. Make up the position appropriately. If investors have small positions and spare money, they can also consider covering positions at low positions to reduce holding costs, but avoid frequent operations. Loss is a common phenomenon in the investment process. Investors should not lose confidence because of short-term losses.