Old funds refer to funds that have been established for a long time, such as Huaxia Strategy, Penghua Putian's expected annualized expected return, Harvest CSI 300, etc., and closed-end funds are also old funds.
The performance of the fund mainly depends on the investment portfolio of the fund and the investment ability of the fund manager, that is to say, the performance of the fund has little to do with whether it is a new fund or an old fund. In the long run, under the same investment management level, the expected annualized expected returns of new and old funds are similar. In the short term, the choice of new and old funds mainly depends on market conditions and investment strategies.
In the rising market, it is suitable to buy old funds, because the position level of old funds is higher at this time. Once the market rises, the expected annualized expected return of the purchased stocks will make the net capital increase rapidly.
For the higher net worth of old funds, investors often have a misunderstanding that old funds are more "expensive" and always want to buy cheap new funds. In fact, investors should understand two factors. 1. Expected annualized expected return on investment depends on the amount of principal and expected annualized expected return. Investors can get more shares by buying new funds with the same funds, but it does not mean that they can have more expected annualized expected returns. Secondly, the old fund is more expensive because after a long period of investment operation, the fund share has more cash value through profit taking or stock rising. Under the same investment amount, it is reasonable for investors to get less share than the new fund.
When the market is facing adjustment, the advantages of buying new funds are more obvious. When the market goes down, the stock position of the new fund is low, and the decline of the stock will not bring too much loss to its net value. At the same time, the new fund has a lot of cash in its hands. When the market falls to the bottom, it will bring it a good opportunity to open a position. Once the market rebounds, it can directly profit and promote the rapid growth of the fund's net value.
The new fund and the old fund have their own characteristics and cannot be compared. Therefore, the selection of funds should not be based on "new" and "old" as evaluation criteria, but should choose fund managers with strong investment ability, understand the past performance level of funds, and pay attention to the operation style and management ability of fund managers, which is the core of fund selection.