Buying and selling in the fund market is a common occurrence, and investors can get more income by buying low and selling high. Because redemption requires a handling fee, income investors can hold the fund for a long time after purchase, which can reduce some transaction costs. So, does the fund sell the part that is sold first and then bought?

Does the fund sell the part that is sold first and then bought?

Yes, fund sales are the part of selling first and then buying. The fund market has its operating rules. In order to ensure the optimization of redemption fees, most fund companies conduct redemption operations according to the principle of "first in, first out". Funds bought on different dates are given priority in selling the first part when redeemed.

Every time investors buy a fund, they have a record, and when they redeem it, they sell it in order according to the record of buying. Generally speaking, funds bought first in order are sold first. This is also the reason why investors calculate the redemption fee in stages according to the holding days.

In addition, the holding of funds is calculated by share, and the sale is also sold by share. Investors follow this rule whether they sell in one lump sum or in batches. When the fund is sold in bulk, the remaining fund share after redemption cannot be lower than the minimum remaining share stipulated by the fund company.