When buying a fund, many people suggested that buying an old fund is less risky, but the new fund also has its unique advantages, such as low net worth and lower purchase cost, which puzzled many investors. I don't know whether to choose a new fund or an old fund. Personally, let's see what the difference is first.

What's the difference between the new fund and the old fund?

The biggest difference between the new fund and the old fund is the establishment time. Generally, funds that have been established for more than 1 year are called old funds, and vice versa. Moreover, the new fund usually has a three-month closed period, during which it cannot be purchased and redeemed, while the old fund does not. Moreover, the new fund has no past performance to refer to, while the old fund has.

Judging from the difference between the new fund and the old fund, the advantage of the old fund is indeed greater. After all, the fund is not a stock. If the new stock is a stock, it is more popular, but if the old fund is a fund, it is more popular, because the biggest defect of the new fund is that it has no historical performance. For old funds, investors can learn about historical performance, investment style of fund managers and other information, and can consult quarterly, semi-annual and annual reports for reference.

If it coincides with the bull market, the position of the old fund will enjoy the rising income of the market, while the opening cost of the new fund will gradually increase with the rising market, which will reduce the investment income obtained at the same time; In the bear market, the low position and opening period of the new fund will bring better defense to investors, which has certain advantages compared with the high position of the old fund; In the volatile market, the investment of new and old funds depends to a greater extent on the investment and research ability of fund managers and teams.

After reading the above introduction, I believe everyone has a good understanding of the difference between the new fund and the old fund. The new fund has the advantages of the new fund and the old fund has the advantages of the old fund, but in general, the advantages of the old fund are even greater, especially those established for three to five years. After a bull-bear cycle, it can still rise well, and investors can pay close attention to it.