The fund fell sharply. Will you buy it?
It depends on the reasons for the decline of the fund. You can't buy a fund at any time, but also start from its reasons. When there is still a downward trend after the fund falls by 20%, it may be that the fund itself is not working, so it is not appropriate to buy at this time. Generally speaking, funds will not keep falling. As the saying goes, "if you fall for a long time, you will rise, and if you rise, you will fall." Fund belongs to a kind of investment with return.
If the fund falls or rebounds due to bad news, such funds can choose the appropriate falling point to buy, and they can easily make a profit at the beginning of bad news or rebound trend. The reason why funds buy when they fall is mainly because by buying at a lower point, they can hold most of the fund shares at a lower investment cost, which reasonably reduces the investment cost.
How much should the fund fall before it is suitable to buy?
How much the fund falls mainly depends on the investor's capital situation and risk tolerance. After all, the decline of the fund does not mean that you can get high returns after buying, and it may continue to fall, leading to the quilt cover of the fund. When the fund needs to withdraw funds after being quilted, it is necessary to reduce the cost of holding positions by adding positions, so that it will be faster to withdraw funds when the fund rises.
Fund investment is a risky investment, and the fund's rate of return changes every day. Investment risk is relatively large, so it is best to choose carefully when investing.