When new friends first come into contact with funds, they will see or hear many obscure and difficult-to-understand terms, and it is difficult to understand their true meaning in a short time.

Therefore, I have summarized all the fund terms in the most popular language, as follows:

1. Subscription: Buying funds

2. Redemption: Selling funds

3. Position establishment: Starting the first purchase

4. Adding position: Buying more of the funds that have already been purchased

5. Reducing position: Selling a part of the funds that have already been purchased

6. Empty position: Selling all the funds, completely sold out

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7. Light position: Only a small part of the funds is used to buy funds, that is to say, the money used to buy funds accounts for a very low proportion of the total investment money

8. Half position: The money used to buy accounts for exactly half of the total investment money8. Heavy Position: Using most of the funds to buy, leaving only a small amount of capital.

9. Full Position: Also known as "full load," which means buying with all the money available.

10. Portfolio Adjustment: Changing the position or type of funds that have already been purchased.

11. Order Cancellation: Revoking the action of buying or selling funds (in other words, going back on a decision).

12. Chasing Gains: Seeing that a certain fund has performed well in the short term and then buying into it following the trend.

13. Cutting Losses: Selling funds that one has already bought and which continue to decline.

14. Bullish: Having a positive outlook on a particular fund, expecting the market to continue rising in the future.

15. Bearish: Believing that a certain fund will decline in the future, and therefore not being optimistic about it.

16. Taking Profits: Selling a fund that has reached one's expected increase in value.

17. Cutting Losses: Selling a fund that has incurred losses promptly to prevent further losses.18. Net Asset Value (NAV): This can be simply understood as the current price of the fund (excluding dividends).

19. Accumulated NAV: This refers to the price of the fund since its issuance up to the current date (including dividends).

20. NAV Estimation: This means the fund company's estimate of the fund's rise or fall for the day.

21. Morningstar Rating: A professional evaluation institution's rating of the fund's grade.

22. Fixed Investment: Investing a fixed amount of money in the fund on a fixed date (for example, Mr. Wang invests a fixed 100 yuan in Fund A every Thursday).

23. Historical Performance: The achievements the fund has obtained in the past.

24. Maximum Drawdown: This refers to the extent to which the fund falls from its highest point to its lowest point within a certain period (the lower the better).

25. Volatility: The fluctuation range of the fund within a certain period (the smaller the better).

26. Sharpe Ratio: Reflects the investment cost-effectiveness of the fund, that is, the excess return that can be obtained for each additional unit of risk (the higher the better).27. Stock Diversification: The extent to which a fund holds a variety of stocks.

28. Stock Valuation: The level of valuation of the stocks held by the fund (i.e., whether the stocks purchased are expensive or cheap).

29. Portfolio Adjustment Frequency: The number of times the fund manager changes or adjusts the stocks held.

30. Fund Distribution: Refers to the fund manager distributing a portion of the profits to the holders, allowing them to secure their gains. (It is not extra money.)

31. Dividend Reinvestment: Reinvesting the distributed money back into the fund, which is equivalent to no change.

32. Bottom Fishing: Believing that the fund has reached a bottom area, one chooses to buy.

33. Bull Market: Refers to a market trend that continues to rise.

34. Bear Market: Refers to a market trend that continues to fall.

35. All-In: Investing all available funds with a high level of risk.

These are the explanations of common fund terms, and you can review them multiple times to enhance your understanding if you can't remember them.Here, you will find periodic updates on fund investment essentials and common knowledge to help you avoid pitfalls. If you are very interested in funds, feel free to drop by anytime! Like and follow for a wealth of prosperity!

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