What is the meaning of private equity fund liquidation line (stop-loss line)

Private equity fund stop-loss line: the warning line is when the net value of the fund is low enough to reach a certain predetermined level, the fund manager needs to reduce the position and increase the proportion of cash in the account to a certain percentage. This is to avoid managers affected by their own emotions and irrational operation, thus reducing the possibility of triggering the stop-loss line. The stop-loss line, on the other hand, is that after hitting this level, the fund must stop operating and go into liquidation as required.

Ping An Bank has a wide range of fund products on its behalf, and different funds have different risks, returns and investment directions, so you can log on to Ping An's Pocket Banking APP - Home - Wealth Management - Fund Channel to learn more about and buy.

Warm tips:

1. The above content is for reference only and is not intended as any investment advice. The relevant products are issued and managed by the corresponding platforms or companies, and the Bank does not assume any responsibility for the investment, payment and risk management of the products;

2. Entering the market involves risks, and you need to be cautious when investing. Before you make any investment, you should ensure that you fully understand the investment nature of the product and the risks involved, understand the product in detail and evaluate it carefully before making your own judgment on whether to participate in the transaction.

Response time: 2021-12-21, the latest business changes, please refer to the official website of Ping An Bank shall prevail.