First of all, it must be clear that buying a fund is not just about leaving it there, and there will be gains.
When the fund rises to a certain extent, it may fall at any time, and it is impossible to keep rising. When the fund's income reaches your expected income, you can choose to sell it properly and make a profit, and then buy the investment after the fund falls.
At that time, there will be two situations in fund investment, one is to hold funds for a long time, and the other is to hold funds for a short time, both of which have their own advantages.
Let's first understand the long-term advantages of the fund:
Long-term holding of funds can reduce transaction costs, because there are subscription and redemption fees for each purchase and sale of funds. Generally, the longer the holding time, the lower the redemption rate will be.
For example, taking China Merchants CSI Liquor Index as an example, the formula for calculating the fund redemption fee is as follows:
Fund redemption fee = redemption amount × redemption rate
For less than 7 days, the redemption rate is 1.50%.
More than or equal to 7 days, the redemption rate is less than 1 year 0.50%.
More than or equal to 1 year, less than 2 years, the redemption rate is 0.25%.
If it is more than or equal to 2 years, the redemption rate is 0.00%
As can be seen from the above, it is necessary to purchase and redeem funds frequently. If you hold the fund for a long time, it will reduce the cost of subscription and redemption. When it is more than or equal to 2 years, the fund redemption rate is 0.00%.
Of course, short-term holding of funds also has advantages:
Generally speaking, short-term holding of funds is more suitable for people who have a special understanding of funds, that is, they can judge whether the next market is going up or down with a high probability, or what kind of funds are going up, so as to realize buying low and selling high. However, short-term holding of funds generally does not yield much, so short-term holding of funds is not recommended in most cases.
From the above comparison, it can be seen that for most ordinary investors, long-term holding is more suitable than short-term, so most medium and high-risk funds will advise users to hold it for more than 3-5 years, so the probability of making money will be greater.
Of course, it depends on your own situation. Financial management is risky and investment needs to be cautious.