Will the fund rise after the plunge?
Not necessarily. Under normal circumstances, there will be a certain rebound after the fund plummets, and even the direct surge may be reversed after the rebound, so many investors like to buy funds after the plunge to bargain-hunting. However, this usually happens when the fund is affected by the overall market conditions. If there is a major negative event in the fund, the decline may be long-term, and it may rebound after the event, and it may even be necessary to close the position because of poor long-term performance.
If the fund in hand has plummeted, you can observe the trend of the fund and the operation of the fund manager. If the fund position is not high, you can buy it after the fund itself is in good condition, but affected by market conditions, seize the opportunity to get on the bus, reduce costs and wait for the rising market. However, if the fund itself has problems, it needs to cut the meat in time to avoid more economic losses.
Moreover, the rise of the fund after the plunge does not mean that we can recover the lost funds, which depends on our specific operations and the rebound of the fund in the later period. The above is a simple answer to whether the fund will rebound after the plunge. When we encounter a plunge, the most important thing is to analyze the causes of the plunge and then take corresponding activities.