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What's the point of adding positions when the fund falls?
When investing in a fund, the income earned by the fund mainly comes from the price difference of the net value of the fund. Generally, as long as the net value of the fund is higher than the net value of the fund when investors buy it, it means that investors can get income. It is normal for funds to go up and down. Many investors will tend to increase their positions when the fund falls. So what is the significance of the fund's decline and increase? Let's get to know each other.

What's the point of adding positions when the fund falls?

Adding positions after the fund falls can help investors share the cost of fund positions equally. Adding positions when the fund falls means that investors can hold the fund at a lower cost than usual and increase the share of fund positions. When the net value of the fund subsequently rises above the cost of holding positions, investors can get good returns. And because the fund is held when it falls, it means that investors' funds have higher profit space. Add positions when the fund falls, and then do T operation when the fund rebounds, and you can earn the difference.

In short, there are two main meanings of fund decline and rise. One is to share the fund's position cost, and the other is to earn the difference between the fund's net value rebound.

Of course, not all funds have to increase their positions when they fall, mainly depending on the situation of the funds. Only the fund itself is a high-quality fund, and the prognosis of the fund is well developed, which is suitable for jiacang. If it is unlikely that the fund will rise in the later period, then when the fund falls, you should not only add positions, but even choose to sell the fund shares you hold and stop losses in time.