Advantages:
1. Great room for growth: the new fund will have greater growth capacity and space than the old fund, and its ability to expect the return level will rise faster.
2. Strong preferential policies: For newly issued funds, fund companies often adopt relatively large preferential policies in order to raise funds quickly. For example, the subscription fee will be discounted or reduced, so that the investment cost of investors will be reduced.
3. Strong impact resistance: the first-time funds are usually invested in the current hot sectors, and the investment hotspots are tightly grasped, and the starting point is highly concerned. In addition, just entering the market, when the market fluctuates, the loss will be smaller than that of the old fund, which can resist the downward trend of the bear market to some extent. Moreover, the initial fund will generally take various measures to mobilize the positive expectations of investors and promote the growth of the fund's net value.
Disadvantages:
1. There are few reference standards for initial funds, and only the investment ability and investment direction of fund managers can be referenced. Without historical performance as a reference, investors can't value through the past, which is risky. There are many reference standards for old funds, such as the historical performance of funds, the investment level of fund managers, and the maximum withdrawal.
2. The net value of the new fund fluctuates greatly, and the trend is not very stable, that is, there will be ups and downs.
3. The initial fund usually has a three-month closing period, which is the fund manager's opening period. During the opening period, fund companies do not accept investors' demand for subscription and redemption. At the same time, during the closed period, investors will suffer huge losses due to changes in market conditions or the trend of fund investment targets.
If you regret buying the initial fund, you can cancel it, but you need to withdraw it before 3 pm on the day of purchase. Withdrawals need to be made during trading hours. After 3 pm, the withdrawal was unsuccessful. Investors can only hold the fund closed and withdraw the funds after redemption, so you need to think twice before you act.