In actual investment, there are still many investors who regard funds as stocks and buy and sell them frequently in the short term.
But why don't regulators and some responsible investors with certain investment experience recommend short-term operation and encourage everyone to hold it for a long time? Because they don't want everyone to make money? Or do I really think about you?
Below I will explain it from three aspects: fund transaction cost, share confirmation time and short-term operation difficulty.
First: it costs money.
The subscription and redemption of funds need to charge a certain percentage of handling fees, which is much higher than the cost of stock trading. The subscription fee of the fund is generally 1.5%, and the redemption fee for holding it for less than 7 days is 1.5%, so a high handling fee of 3% will be charged regardless of whether you make money. If it is 1 000 yuan, 300 yuan's subscription and redemption fee will be gone.
Some people will say that the redemption fee for holding for more than 7 days is not so high now that the subscription fee is 10% off?
Even if the subscription fee of most Internet fund sales platforms is discounted, it is 0. 15%, and the holding period is more than 7 days, and there is still 0.5%. The total subscription redemption fee of 0.65% is much higher than the cost of stock trading.
Some people will say that the cost of over-the-counter subscription and redemption is high. I can buy and sell funds on the brokerage platform. The cost of exchange-traded funds is similar to that of stock trading.
However, the number of funds traded on the market is far less than that purchased off-market. Not all funds can be traded on the floor, such as ETF, LOF and closed-end funds. The trading price on the floor is real-time, and there is a risk of buying at a high point and paying a premium.
Second: Time-consuming.
It takes one or two trading days for the counter to confirm the subscription and redemption funds, usually T+ 1 or T+2 to confirm the share, and it takes one or two days for the redemption funds to arrive in the account after confirming the share. In this way, a week's time is wasted between subscription and redemption.
You can't decide at what price the net value of fund subscription and redemption will close, because the fund subscription is based on the principle of unknown price, that is, the net value of the fund on the day of subscription and redemption is unknown, and the application for subscription and redemption submitted before 15 is based on the net value of the fund on the day after closing.
If you submit a redemption application when the market rises sharply on a certain day and the market falls back at the close, then the final price of your redemption fund is still the net value of the fund after the close of the day, not the net value of the fund when you watch the market.
Third: it needs energy.
Domestic capital market is dominated by individual investors (retail investors). Almost every investor fantasizes and thinks that he has super power different from other ordinary people, can accurately choose the timing, buy low and sell high, and operate continuously in the band, thus realizing wealth and financial freedom in a short time.
In addition, the online media over-publicizes the family history of some hot money bosses from hundreds of thousands of funds to hundreds of millions of net worth, which makes most people unable to recognize the facts. It is an anti-human thing to insist on holding for a long time.
If you just start investing, an experienced friend around you tells you not to do short-term operations, but to hold the investment concept for a long time, you will feel that he is so stupid, and even think that he is preventing you from making money. Especially when you just made money in the ultra-short term for the first time, your confidence expanded rapidly, and you felt that the stock market kept sending you money like a printing machine, but in fact you were not far from losing money.
But in fact, even the most professional fund managers have given up timing trading, while an ordinary person who knows nothing is constantly keen on timing short-term trading. Everyone wants to accurately throw high and suck low, enjoy the benefits brought by every rise, avoid the losses of every fall, and eat up the benefits of every band, but this is absolutely impossible.
Frequent trading operations will also consume a lot of your personal time and energy. As an ordinary office worker, I have to go to work and take care of my family, and my free time is running out. You might as well give it to professionals, spend more time with your family and improve your ability.
In China's Public Offering of Fund industry, it is a common phenomenon that funds make money and fund holders don't. Even the fund with the best performance can't guarantee that it will go up or down all the time. However, retail investors always can't control themselves. Like day trading, they rush in to buy when the market is high, and cut their meat to redeem when they fall, so no matter how good their performance is, they can't guarantee to make money.
The two principles of "long-term holding+not chasing up and killing down" have been repeatedly verified in the past. If you don't do it well at the right time, it will often become "chasing up and killing down". Long-term holding will avoid the possibility of intraday trading and chasing up and down.
You can't make such smart money by throwing high and sucking low. You can be silly, buy at the low point of the bear market and hold it for a long time until the bull market redeems it. It seems simple, but it needs a strong investment psychology, which is an easy and labor-saving winning strategy.