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Did the foundation fall to zero?
Rest assured, no matter how the fund falls, there is almost no possibility of falling.

Because funds generally invest in dozens of stocks, if you want the fund to fall, unless these dozens of stocks go bankrupt. If you say that the fund has never stepped on thunder, many people may not believe it (neither do I), but it is almost impossible to step on dozens of stocks at the same time.

So don't worry about the foundation losing its principal.

But why did the cumulative net value of Soochow Convertible Bond B Fund (150 165) not only disappear, but also become negative?

According to the analysis just now, it is really impossible for the fund to fall, let alone fall to a negative number. So there is only one explanation for this situation, that is, the fund has been leveraged.

At present, there are three main types of funds involved in leverage:

1. Active bond fund

According to the Measures for the Operation and Management of Public Offering of Securities Investment Funds, the leverage of open-end bond funds can reach 1.40%, and the leverage of fixed debt base is higher, reaching 200%.

This is an extreme example,

Assuming that the net assets of a fixed debt base are 654.38+0 billion, the fund manager chooses to mortgage the 654.38+0 billion bonds he holds, and then invest the mortgaged funds in bonds. Finally, the total assets of the fund reached 2 billion pounds.

When the decline of this fixed debt base reaches more than 50%, then the net value of the fund may be negative.

But what San Sijun wants to say is that it is difficult for bond funds that are actively managed to fall by more than 50%. Because bond funds invest in dozens of bonds, it is almost impossible for you to let the fund hold these dozens of bonds and step on thunder at the same time.

At the same time, from the historical data, there are not many bonds that default, and even if there is a default, it is unlikely to cause all losses.

Therefore, even if active bond funds continue to fall, there is almost no possibility of falling.

2. Funds investing in stock index futures and commodity futures

Funds that invest in stock index futures and commodity futures are also unlikely to have negative numbers.

Because this kind of fund has strict position requirements for stock index futures and commodity futures, when the stock index futures and commodity futures lose money to a certain extent and the margin is insufficient, it will trigger forced liquidation.

Therefore, it is impossible to fall.

For example, Huitianfu will definitely open a hybrid fund (000762). According to the prospectus, the sum of the value of futures contracts held by the Fund and the market value of securities cannot exceed 100% in the open period and the closed period.

3. Graded funds

Graded funds belong to more complicated fund varieties. So, San Sijun is here. Simply put, share B borrows money from share A for investment, and share A regularly charges interest to share B. ..

Through this explanation, it is not difficult to find that for the holders of share B, as long as they pay the interest of share A regularly, they will be responsible for their own profits and losses.

Therefore, as mentioned above, Soochow Convertible Bond B Fund (150 165) is obviously wiped out, otherwise the cumulative net value of B shares may be negative.

However, according to the latest supervision, there is now a threshold limit of 300,000 for graded funds in the investment field, and ordinary investors should not be exposed to this variety.

Well, the conclusion is that no matter how much the fund falls, it is impossible to fall.