Similar to the stock market, the fund market is also affected by many aspects. To put it simply, the strategic placement fund will not only be affected by the A-share environment and bidding fundamentals, but also by changes in stock prices in overseas markets. Therefore, investors need to know clearly when purchasing strategic placement funds. What are the disadvantages of strategic placement funds?

What are the disadvantages of strategic placement funds?

1 The closed period of the strategic placement fund is long and its liquidity is poor, so it cannot be redeemed when it is in urgent need of funds.

It is difficult to predict whether the strategic placement fund can make a profit. As inflation intensifies, even if it is profitable, it will depreciate.

3. The strategic placement fund can't be purchased with you, and it needs to be redeemed after the fund closure period.

Generally speaking, strategic placement funds mainly have the above shortcomings, and investors should not expect excessive returns when choosing such funds. In the fund market, users need to understand that participation often corresponds to higher costs when the market is hot, and higher valuations may need to be digested in the next period of time.