Which is better, the new fund or the old fund?
The advantage of buying a new fund is that the subscription fee is cheaper than the subscription fee during the raising period, but if you have less principal, you won't save much money. In addition, there are many uncertainties in the new fund.
For example, the new fund needs to be closed by the manager for two or three months. During this period, fund companies and fund managers will invest with investors' money according to the investment strategy in the fund prospectus. During this period, we can't redeem the subscribed funds, and the funds are completely locked and have no liquidity.
Secondly, the new fund has no historical performance to inquire about. We don't know the strength of the fund except the reputation of the fund manager. We don't have any statistical data to objectively refer to the possible future performance of the fund.
Finally, the fund size of the new fund is unpredictable, that is, you can't know how much money the fund will eventually raise. If the scale of the fund is too large, it will affect the performance of the fund. If the fund is too small, it may not be able to operate for a long time.
The corresponding old fund has no trouble with the new fund. First of all, the funds have been allocated, and many funds have long-term historical performance to refer to, so the practicality of fund investment strategy can be considered. The scale of old funds is generally not low, and there are not as many concerns as new funds. In most cases, it is better to choose an old fund than a new one.
Of course, everything is not absolute, and there is no conclusion as to which of the old and new funds is better. What matters is the ability of fund managers, and the past does not necessarily represent the future.