In the domestic investment trading market, the speculative behavior of buying low and selling high seems to be a deep-rooted investment habit. The reason is simply that they overestimate their ability to judge the market. They always feel that they can accurately judge the market point, buy from low positions and sell from high positions. Fear and greed lead to various irrational trading decisions. . However, looking at historical data, it does not show that increasing the frequency of transactions increases profits. Instead, losses are caused by frequent transactions. For example, if the market is rising, investors always lose money. For example, the fund market makes money, but the fundamentals The phenomenon of people not making money. Why are funds not traded frequently?

First, increase transaction costs. Fund transactions have transaction costs. Many investors ignore the existence of transaction costs and become addicted to transactions. Funds have subscription fees, subscription fees, redemption fees, custody fees, etc. Take the most traded active equity funds as an example. Generally speaking, the subscription fee of a fund is about 0.0%, and the redemption fee is about 0.0%. The subscription fee will be discounted by 10%, but the subscription fee of many new funds is not discounted, and the redemption fee will not be discounted. Therefore, frequent entry and exit will cost several times more than others. It may not seem like much at a time, but when it accumulates, it adds up to a large amount of fees. Moreover, fund transaction fees are generally calculated step by step based on the holding time. The longer the holding time, the lower the transaction cost. The holding time The longer it is, the lower the cost, and you can still earn long-term stable income. Frequent transactions only increase transaction costs, but you still can't make money.

Second, it consumes time. The settlement rule for ordinary A-shares is T+1, while the settlement rule for ordinary open-end funds is T+2, which takes up more time. If you subscribe for a fund on T day, It takes until T+1 day to confirm the successful subscription share and start calculating the profit and loss. The same is true for redemption. The time cost of funds in the middle is consumed. The more frequent transactions, the greater the consumption. Suppose further that if you happen to be optimistic about a fund and want to replace the fund in your hand, you must first redeem and then subscribe. In the intervening few days, you may have missed the best entry opportunity. The tossing back and forth virtually increases the time cost, which is equivalent to reducing the income.

Third, it consumes energy. Frequent trading consumes a lot of energy, but long-term holding seems to save a lot of time and effort. Frequent trading means that you need to pay attention to market dynamics in real time, judge the position of the market, find the right time to enter and exit the market, and often look for fund dynamics to find better underlying funds. Ordinary people spend most of their lives normally. You have to work or deal with various family matters all the time, so your time and energy are limited. Furthermore, if the income is not significantly improved during frequent transactions, it will undermine investment confidence and it is easy to give up investment. It's better to be optimistic about a fund and keep holding it to save worry and effort. The above is the analysis on why funds cannot trade frequently. I hope it will be helpful to you.