The tragic decline of Dongfanghong Ruixi Fund is obviously caused by market differentiation. According to the relevant public information, affected by the epidemic, the pressure of economic growth is greater, and many industries will be affected to a certain extent. The growth rate of short-term performance dropped significantly, the market differentiation was obvious, and the valuation difference between industries increased, which led to the serious decline of Dongfanghong Ruixi Fund.