How is the fund loss calculated?
Fund income = (current net value-net value at the time of purchase) * fund share. If the result is negative, it means loss; if it is positive, it means making money. Furthermore, when the fund is sold, the handling fee will be calculated according to the holding time. The longer the holding time, the lower the handling fee, even 0.
Why does the fund lose money?
The Fund is operated by a professional fund manager, and neither the fund manager nor the fund company promises the principal or income of the Fund. Fund is an investment method of "enjoying the benefits and taking risks", which simply means that there are ups and downs. It is suggested to choose the corresponding fund according to your risk tolerance and preference.
How big is the fund risk?
Funds are managed by professional fund companies. By diversifying investment risks, they invest in limited fields, so the risks are less than those of individual stocks or bonds. However, you need to be reminded that the fund may lose money or earn income. I suggest you choose the corresponding fund according to your risk tolerance and preference.
Will there be no money left in the fund loss?
No, because the maximum loss of a fund generally does not drop to zero. If the fund is poorly managed, it will generally face liquidation first. After the liquidation, the fund assets will be distributed to the holders according to their shares.
It can effectively avoid fund losses. When investors buy funds, they should choose those with good historical performance and strong ability of fund managers. Moreover, fund investment should also pay attention to buying low and selling high, and buying with low net worth.