In recent years, most young people regard funds as the first choice for financial management. Funds are not as risky as stocks, and they are also very convenient to buy. Alipay, WeChat or other fund software apps can be bought in it. Many white people who have just contacted the fund will want to redeem it when they see that the fund has fallen for a few days. In fact, funds are very volatile products, and it is common to fall occasionally. So why can't they buy funds frequently? You should know these three points!

1. Frequent operation of funds requires handling fees and high transaction costs.

Funds can be divided into on-site funds and off-site funds.

The trading commission of on-site funds is basically between 22,000 and 25,000, and the minimum charge for each transaction is 5 yuan. If you operate frequently and buy and sell funds, you will charge a handling fee, which is not a small fee.

The subscription fee for many platforms of OTC Class A funds is the annual sales service fee, and the redemption fee decreases according to the holding time. In this way, the short-term trading of the fund will greatly increase the cost.

2. Easy to buy high and sell low

If the trading time of the fund is short, if you can't help selling when the fund falls, then when the fund rises sharply and you can't help but finally enter the market, you buy at the highest point of the fund, and then the fund falls again. Repeatedly, you will buy high and sell low, and you will lose a lot of money.

3. Small profit margin

Generally speaking, the fund invests in dozens of stocks to spread risks through combination, and the stocks are single, so in contrast, the short-term income of the fund will not be as high as that of a single stock.

So an operation may only earn a few points or one or two points.

This screenshot is from Alipay fund transaction.

When the fund is redeemed, the expenses are generally divided according to the holding time. The longer the holding time, the less the redemption fee. The specific redemption rate of the fund can be inquired before buying the fund, and there will be a detailed explanation.

Generally, if you hold the fund for more than two years, you will be exempted from redemption fees. Therefore, the fund relies more on long-term investment to obtain income.