When the fund returns meet expectations, investors will sell the funds they hold for profit, but they find that the funds they sell have been deducted a lot of money, which makes some investors very confused. So what caused the fund to be deducted so much money when it was sold?

Why do funds sell so much money?

1. There is a charge for selling the fund. Under normal circumstances, investors need to charge a certain redemption fee according to the holding period of the fund. For those whose term is less than seven days, the redemption fee of 1.5% of the turnover is regarded as liquidated damages, which leads to the deduction of more money when selling the fund.

2. For some back-end charging funds, in addition to redemption fees, subscription fees may also be charged, which is the charging mode of back-end funds, which will lead to an increase in fund selling fees. However, the longer the holding time, the lower the redemption fee, and even the redemption fee may be exempted. The shorter the holding time, the higher the charge.

The fees charged for short-term holding of funds are very high, which is also one of the purposes of our long-term holding of funds. In order to obtain relatively high returns, investors need to hold funds for a long time, rather than trading in the day. If the fund has special circumstances, such as poor long-term performance or changing the fund manager, investors can consider selling or changing the fund.

Finally, remind investors that the fund is risky and investment needs to be cautious.