Fund undervaluation buy good?

When buying funds, there are many investors are saying that the fund will be better to buy at a low valuation, but the newcomer to understand the fund is a little less, will think about the fund is good to buy at a low valuation? Fund at a low valuation to buy will earn? We have prepared the relevant content for your reference.

Fund low valuation buy good?

Funds bought at low valuation is good or not depends on the situation, because the funds bought at low valuation fund will not necessarily rise, the fund will not rise is mainly to see the investment target, then if the funds bought at low valuation, the fund just went up, then the fund will make money, of course, is good, but if the funds bought at low valuation, but fund has been the market is not good, always falling, then buy will lose money, it is not appropriate.

General fund low valuation will not determine the fund's ups and downs, the fund low valuation can only show that this fund has the value of the investment, the fund valuation refers to the value of the fund assets and liabilities in accordance with the fair price of the fund to calculate, assess, to determine the process of the net value of the fund's assets and the net value of the fund's shares, if when the fund valuation is too high, it shows that the fund has a bubble, the risk of its investment will be relatively large

Will a fund bought at a low valuation make money?

Funds at a low valuation to buy will not earn also depends on the situation, to analyze from a number of aspects of the fund there is no prospect of buying will not go up to consider, some people always feel that the fund at a low valuation to buy is cost-effective, the possibility of up is relatively large, but after buying, found that the fund has been falling, the bottom of the deep, the fund will not be able to see the bottom.

Funds are part of a cyclical industry, if the industry happens to be part of the recessionary phase, the fund will show a low valuation at this time, but buy may have to be the next cycle to come fund will rise, so the investment cycle is long.

Secondly, when buying a fund, you can't just look at whether the fund has a low valuation or not, but also many other factors that need to be taken into account, such as: the type of fund, the fund's past returns, whether the fund manager is experienced, the size of the fund, the Morningstar rating, the annualized rate of return and so on.

The fund is a risky investment, in the market is not good, it will lose money, so in the purchase, must be a little more cautious, if there is no ability to bear the risk, then it is possible to consider the bank's fixed deposits, the bank fixed deposits are capital-protected, interest-protected, there will not be any loss.