Has the foundation fallen to no principal?
The fund will not fall to no principal, because no matter how the fund falls, the net value cannot be zero. As long as its net value is not zero and its share is not zero, it means that there is still some principal, but if the fund plummets, investors may cause greater losses.
Both Public Offering of Fund and private equity funds are at risk of liquidation, but even liquidation will not make the principal zero. The probability of foundation liquidation is low, and the termination conditions of each fund will be slightly different. You can view the related expressions of fund contract termination.
Description of increase or decrease of funds:
1 The fluctuation range of trading funds is the same as that of stocks, which is10%;
2. The constituent stocks of the tracking index are only the index ETFs and LOFs of GEM stocks or science and technology innovation board stocks or other stocks with a price limit of 20%, with a price increase or decrease of 20%;
(3) The fund contract stipulates that the assets invested in GEM stocks, science and technology innovation board stocks or other stocks subject to 20% increase or decrease shall account for no less than 80% of the non-cash fund assets, and the increase or decrease shall be 20%.
There are many reasons for the decline of the fund. The most common ones are the poor investment product environment, the stock market crash, the drop in interest rates, the poor fund itself, and so on.