Some investors always like to buy when the fund's valuation plummets, but investors may be confused, such as is it suitable to buy when the fund's valuation plummets? What does the sharp decline in fund valuation mean? I hope you like it.

Is the fund valuation falling sharply suitable for buying?

It depends on whether the fund valuation is suitable for buying. When the fund's valuation plummets, the first thing to do is to analyze the reasons for the fund's plunge, whether the fund itself or the market is not good, and most funds are falling.

If it is due to the reasons of the fund itself, such as the fund manager's misoperation, or the fund itself is not good, the fund always falls more and rises less, then it is not recommended to buy it. It may be a bottomless pit, and the more you lose, the more you lose.

If most funds fall because of the influence of market factors, then you can wait and find the right opportunity to buy, because when most funds fall, they are generally funds that have a big relationship with the stock market. When the stock market is bad, funds will also fall. When the fund valuation is low, the fund has investment value, the fund has more room for growth, and the investment fund has greater probability of gaining income.

What does the sharp decline in fund valuation mean?

The sharp decline in the valuation of the fund means that the price of the fund is falling sharply. The lower the general fund valuation, the smaller the risk will be, indicating that the fund has certain investment value, greater room for growth and the possibility of making money. You can choose to buy when the valuation of the fund falls sharply. If you buy at a low level and sell at a high level, then the fund may make money. If you buy at a high level and sell at a low level, you will lose.

But when buying a fund, there are many factors that affect the rise and fall of the fund. Everyone should look at the prospects of fund investment targets, and then analyze them in combination with market conditions and other reasons. Most of the funds whose general fund valuations have plummeted have invested in the stock market, which is risky. It depends on whether the stocks held by the fund have stabilized. When the stock market or stocks held by the fund have stabilized, it is the best time to start.

There are few cases where the valuation of a fund like the Monetary Fund has fallen sharply. Because the investment direction is the money market, the risk is relatively small and the income is relatively stable. There are few cases in which the valuation of the fund has fallen sharply, and the general fund has relatively small fluctuations.

Basic analysis of stock trading

Fundamental analysis, also called basic analysis, is based on the intrinsic value of securities, focusing on the analysis of various factors affecting the trend and price of securities, so that investors can decide how and when to buy securities.

Learn to analyze economic data: To put it bluntly, investors' fundamental analysis of foreign exchange trends is to analyze a series of national economic data. The change of exchange rate is different from the economic data related to different countries, and also different from the economic data between countries. Investors learn to capture and analyze hot information in the market from a large amount of data. However, it should be noted that the hot spots in the market will change with the changes in the political and economic environment.

Pay attention to current hot spots: the hot spots that investors in different countries pay attention to are different. For example, in Europe, investors are concerned about the economic growth rate and price index of the euro zone. In Asia, they are concerned about economic growth and the expectation of RMB appreciation.