Can funds make short-term investments?
Funds can make short-term investments, but it is generally not recommended.
Funds can make short-term investments, but when making short-term investments, investors are required to grasp the trend of funds more accurately in order to obtain income, because once mistakes occur, investors may miss trading opportunities or even lose money, or be trapped. Moreover, funds need to be bought and sold frequently in the short term, and certain fees need to be charged for fund transactions, especially redemption fees. The shorter the time, the higher the rate and the more fees charged. Short-term investment is prone to the situation that the handling fee is greater than the income, so it is a loss, so it is not cost-effective for the fund to make short-term investment.
The trend of the other fund is relatively stable, and generally there will be no big fluctuations. Short-term holding is less likely to get higher returns, which is suitable for long-term holding, while long-term holding is more likely to get higher returns.
What are the skills of fund short-term investment?
1, fund selection
If investors choose funds for short-term investment, then compared with other funds with large fluctuations, such as stock funds, investors can still use their fluctuations to earn a certain price difference.
Step 2 buy in batches
In the process of short-term investment, it is suggested that investors can buy in batches to reduce the cost of holding positions, and when the net value of subsequent funds rises and is higher than the cost of holding positions, sell the funds to make profits and earn the difference.
3. Timing of buying and selling
Investors can choose to buy when the fund starts to rise and sell when the fund is about to fall to earn a certain income. However, this requires investors to accurately grasp the late trend of the fund, and once mistakes occur, it may lead to losses.
4. arbitrage
There are funds in both on-site and off-site markets, and short-term trading investors can also use the price difference between the two trading markets to arbitrage and earn the price difference.