When buying and selling funds, some investors like to buy and sell funds frequently, but some people always say that it is not recommended to buy and sell funds frequently, so why not recommend buying and selling funds frequently? So today, Bian Xiao is here to sort out the relevant knowledge of the fund for everyone. Let's have a look!

Why not recommend frequent trading of funds?

Reason one: the handling fee is high.

Frequent trading of funds is subject to a handling fee every time, but if you hold funds for a long time, some funds will be free of handling fees after a certain period of time, so it is more cost-effective to hold funds for a long time, and the handling fee for short-term redemption of funds is generally higher. Frequent trading of funds requires more handling fees.

Reason 2: Holding funds for a long time can spread risks.

You should know that funds are highly volatile products. If you hold funds for a short time, the fluctuation of funds is relatively large, and it is impossible to effectively spread its risks. If you buy and sell funds frequently, the risk is relatively high, and holding funds for a long time can reduce the risk of funds.

Reason 3: holding funds for a long time is more worry-free and labor-saving.

Trading funds frequently is very laborious. You need to look at the fund often, and you may not be able to make money. When it is possible to redeem, you will still lose money, which is not cost-effective. Therefore, frequent trading of funds is generally not recommended. Funds are more suitable for long-term holding.

In addition, frequent trading of funds is prone to high buying and high selling, which is not cost-effective and may also cause great losses. Therefore, when you buy a fund, you should also consider your ability to take risks. If they can't afford high risks, don't choose high-risk fund varieties.

Does C Fund operate frequently?

Whether C Fund operates frequently depends on the situation. If it can make money, that's good, if it loses money, that's not good. The essence of buying a fund is to buy it when the fund is low and sell it when it is high. If you are a short-term expert, it is ok to operate frequently.

However, if Xiaobai is inexperienced and does not know much about the fund, it is generally not recommended to operate the fund frequently. Although Class C is a back-end fee, it will not charge subscription fees, but the risk of short-term fluctuation of the fund is relatively large. If the income you earn is not enough to offset the handling fee, you will lose money.

Is it appropriate for C Fund to operate frequently?

Although most C funds are free of redemption fees after 30 days, there are still sales service fees. If it is bought and sold in a short time, a redemption fee is also required. So from this point of view, they are not suitable for frequent operation. This frequent operation refers to the operation within a few weeks.

Generally, the short-term fluctuation of funds is relatively large, and long-term holding of funds can average the risks brought by short-term funds, so the probability of making money by holding funds for a long time is greater, but the final choice depends on investors themselves.

Is the fund suitable for frequent operation?

Generally speaking, the fund is not suitable for frequent operation, because every transaction of the fund is charged. If the fund operates frequently, such as buying today and selling within three days, then the handling fee is relatively high, which is not cost-effective, and the handling fee is not small.

Secondly, frequent operation of funds increases the risk of funds, because the short-term fluctuations of funds are relatively large. If you are still trading frequently at a loss, you may suffer serious losses.

Does the fund operate frequently?

Whether the fund operates frequently depends on the situation. The purpose of buying funds is to make money. If more funds are invested in a short period of time, the fund will increase greatly, and it will be good to offset the handling fee and make money at the same time.

However, if the funds are relatively small, it is not recommended to operate the fund frequently. Doing so will not only make no money, but also increase the probability of loss. The essence of buying funds is to buy low and sell high. As long as it can make money, it's good. As for how to operate, it depends on the individual investment ability of investors.

Why not recommend frequent trading of funds? Related articles:

★202 1 Basic Elements of Option Trading