With more and more investment methods of investment funds, investors have a deeper understanding of funds. Many fund investors want to know whether the fund is more suitable for long-term investment or short-term holding. Let's talk about it together

Many people think that for most funds, medium and long-term holding will be more cost-effective. Why?

First of all, long-term holding reduces the cost of purchase and redemption.

As we all know, when investing in a fund, you need to pay corresponding fees for both fund subscription and redemption, which is not a small investment cost for high fund investors. Short-term fund investments will be redeemed many times, so you have to pay more fees.

Secondly, short-term fund investment can't make money, and it will also lose fees.

The ultimate goal of fund investment is to obtain expected returns and obtain higher expected returns within their own risk tolerance. However, due to the short investment time, the expected return of short-term investment funds will not be obvious, and the handling fee will be lost in vain. So generally speaking, investors are more willing to make long-term investments in funds.

In addition, the types of investment funds are more suitable for long-term investment.

We know that the expected return of a fund depends on its net value. For low-risk funds, the expected rate of return is basically fixed and low. With the increase of holding time, the redemption fee will not only decrease, but also the expected return will be higher than that of ordinary short-term investment.

All the above opinions about whether the fund is suitable for long-term holding or short-term holding are for reference only, and I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.