What is the highest withdrawal rate of the fund?
The maximum withdrawal rate is a risk indicator, which is specially used to describe the worst situation that may occur after purchasing a product. Refers to the maximum expected rate of return on product net worth during the selected period.
For example, when the fund product was first established, the net value was 1. In the second year, the net value rose to 2 and earned a return of 100%. Many investors are very optimistic and buy a lot when their net worth is 2. In this way, in the next period of time, the value of the fund will fall back. On the whole, the fund still has a yield of 50%, which is not low. In particular, the initial investors gained 50% of the expected income, while the investors who bought at the highest point 2 lost 25%. The 25% here is the maximum withdrawal rate of the fund we are discussing today.
Is the maximum cash withdrawal rate good or small?
According to the above description, smart investors can understand that for investors, the return rate of funds is naturally not as big as possible. The greater the withdrawal rate, the more the value of the fund falls, and the more you buy at the high point, the greater the possibility of loss.
As an investor, you should know that the higher the withdrawal rate, the greater the possibility of loss. By observing the historical withdrawal rate data of funds, we can find the stability of fund income level and the possibility of potential losses when investing, so making good use of this index can help us choose excellent funds and reduce the risk of funds.
How to treat the highest withdrawal rate of funds? Is it good or small? That's all, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.