Why does the fund lose money?
1, fund company, manager, quality, fund liquidation
It may be because the performance of the fund company is unstable, and the performance will inevitably decline, which will lead to the unstable development of the fund and losses.
The investment level, past performance, investment experience and management level of fund managers can also affect the operation of funds. Funds are mainly operated by fund managers. If the fund manager is poor, it may directly lead to losses.
The quality of the fund itself directly affects the income of investors. If other funds are in an upward trend, while funds are in a downward trend or even a big decline, then it may be that the quality of funds is poor.
Moreover, the fund's poor performance and poor management have led to a sharp drop in the net value of the fund, which may lead to liquidation and investors' losses.
2. Market situation
In the case of bad market conditions, investment may generally be unprofitable or even at a loss. When the market is good, the funds in the market can generally rise.
3. Day trading
Day trading, investors, lead to an increase in fees, but the return on fund investment itself is not very high, and there may be cases where fees are greater than returns, so it is a loss.
4. Investor operation
For example, no investment opportunities have been found, and follow suit. For example, investors chasing after the fund rises may be trapped at a high level and can only sell at a low level, resulting in losses.
What should I do after the fund loses money?
1, conversion fund
If a fund's performance is poor or investors suffer serious losses, then investors can consider switching funds, buying other types of funds, choosing funds with higher quality and lower risk, and directly switching funds will save investors a handling fee.
Step 2 make up the position
If investors think that although the fund is currently in a state of decline, it is more likely to rise in the later period and the quality of the fund is better, then they can make up the position. This method requires investors' investment level and is suitable for funds with good historical performance and high quality.
Step 3 sell stop loss
When the fund falls, investors can sell the stop loss in time. Or you can set a stop loss point, automatically sell after the fund falls to the stop loss point, and stop the loss in time.