Frequent capital transactions will increase costs. The fund includes subscription fee, subscription fee, redemption fee and custody fee. The subscription fee of general equity funds is about 1.5%, and the redemption fee is about 0.5%. Although subscription fees are generally discounted, frequent visits will cost several times more than others for no reason.
The transaction cost of funds is generally calculated step by step according to the holding time. The longer the holding time, the lower the transaction cost.
Day trading will also increase the time cost. Ordinary open-end funds are the settlement rules of T+2. To subscribe for the fund on T day, you need to confirm the successful subscription share on T+ 1 day and start to calculate the profit and loss. So is redemption. The time cost of intermediate funds will be consumed. The more daily purchases, the greater the consumption. If you happen to be optimistic about a fund and want to replace the fund in your hand, you must redeem it first and then apply. These days, you may have missed the best time to enter. Increasing the time cost is equivalent to reducing the income.
Day trading is very energy-consuming. Day trading means that we need to pay attention to the market dynamics in real time, judge the market position, and find the right time to enter and leave. Ordinary people live a normal life, spend most of their time at work or dealing with family affairs, and their time and energy are limited. Moreover, if there is no obvious improvement in the income during frequent trading, it will hit the confidence of investment and it is easy to give up investment.
After optimistic about a fund, it is better to continue to hold it, saving worry and effort.