It is more cost-effective to hold it for a long time. Usually, long-term holding means holding for more than 1 year. For investors, Class A funds charge a one-time subscription fee at the time of subscription, while Class C funds do not need subscription fee at the time of subscription, but the accountant raises the daily sales fee. If you hold 1 year, you will still be charged. For investors, this fee is much higher than the subscription fee, so it is not cost-effective.

Take Huaxia CSI 300ETF Linked Fund as a simple example:

The subscription rate for Class A funds below 1 10,000 is 0.12%; The holding period is more than 1 month and less than 1 year, and the redemption fee is exempted if it is more than 1 year; Class C funds do not charge subscription fees, and the sales fee is 0.5% per year. The redemption fee for funds held within 1 year is 0.5%, and funds held above 1 year are free.

In a broad sense, a fund refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The funds we are talking about now mainly refer to securities investment funds.

Open-end fund refers to an investment fund whose scale is not fixed, but which can issue new shares or be redeemed by investors at any time according to market supply and demand. Closed-end fund is relative to open-end fund, which refers to the investment fund whose fund size has been determined before issuance and remains unchanged within the specified period after issuance.

Before 2004, open-end funds were not listed and traded on the stock exchange, but were generally purchased and redeemed through consignment agencies such as banks or direct selling centers. After 2004, China innovated the operation mode of open-end funds, allowing some open-end funds to be listed and traded on the stock exchange, and became a listed open-end fund (LOF). The scale of the fund is not fixed, and the fund unit can sell it to investors at any time or buy it back at the request of investors.

Open-end fund is one of the basic forms of fund operation in the world. Fund management companies can sell new fund shares to investors at any time, and also need to buy back their fund shares at any time at the request of investors. Open-end funds have become the mainstream of the international fund market. More than 90% of the fund markets in the United States, Britain, Hongkong and Taiwan Province Province are open-end funds.