Although the implementation of the new redemption regulations takes into account the risk of fund liquidity and protects the safety of investors' funds, it also has some other impacts on investors, mainly as follows: 1. Will
Greatly increase the fees of short-term investment funds. Usually the fund redemption rate is around 0.5%. When there are discounts, the rate will be even lower, and the 1.5% redemption rate is 3% of the original redemption rate.
times, in contrast, the implementation of the new regulations will lead to an increase in the cost of short-term investment funds.
2. Greatly dampen the enthusiasm for short-term investment. Short-term fund investors can take advantage of fund fluctuations to quickly buy and sell funds to obtain profits. However, when the new regulations are implemented, short-term investors will need to pay more fund redemption fees.
It will lower the overall income, which will lead to a great reduction in investor enthusiasm.
The new rules on fund redemption have a greater impact on Class C funds, which have no subscription fees, because Class C funds are a fund type favored by swing fund investors.
To sum up, after the implementation of the new redemption regulations, investors should avoid short-term investments and swing operations to save investment costs.