Why can't the fund operate frequently?
The transaction cost of 1 is high.
Funds are divided into on-site funds and off-site funds. The transaction fee of the funds in the venue is mostly trading commission, which is generally between 20,000 and 50,000 yuan, and the lowest 5 yuan is still relatively low. OTC Class A funds mainly include subscription fees and redemption fees, while Class C funds mainly include sales service fees and redemption fees. The subscription fee for many platforms is 0. 1%, the sales service fee is 0.25%, and the redemption fee is 0.5%, which decreases according to the holding time. In this way, the short-term trading of the fund will greatly increase the cost.
2 Easy to buy high and sell low
If the fund conducts short-term trading, it is easy to panic when it falls, and the lower it falls, the lower it can't help but sell. Usually, this is just the time to bottom out. When the rise can't resist the temptation and finally enters the market, it is often bought at a high point and the market falls.
3 the profit margin is small.
The investment of the fund is relatively scattered. A fund usually invests in dozens of stocks, or even more, to spread risks through portfolio investment, but at the same time, the short-term income is relatively not as high as that of a single stock.
(Screenshot from Alipay Fund Transaction)
When the fund is redeemed, the expenses are generally divided according to the holding time. The longer the holding time, the less the redemption fee. The specific redemption rate of the fund can be inquired before buying the fund, and there will be a detailed explanation. Considering the initial investment, there is no redemption fee after holding the fund for more than two years. Therefore, the fund relies more on long-term investment to obtain income.