The so-called "first in, first out" means that when investors buy the same fund many times, they will redeem it in the order of buying, that is, the first one to buy will redeem it first.

Specific to the fixed investment of the fund, when you redeem all the fund shares, then the fund shares invested in the last two years will definitely not meet the above holding requirements within a certain period of time (generally more than two years), so the fund shares invested in the last two years will be charged a redemption fee.

Reminder: If the latest fixed investment fund shares are held for less than 7 days, a punitive redemption fee of 1.5% will be charged for the latest fixed investment fund shares.

What is punitive redemption fee?

In fact, this punitive redemption fee is set by the CSRC to prevent ordinary investors from playing short-term or frequently buying and redeeming funds.

According to the Regulations on Liquidity Risk Management of Public Offering of Open-end Securities Investment Funds issued by the CSRC, except for money funds and transactional open-end index funds, investors who have held for less than 7 days (natural days) will be charged a redemption fee of not less than 1.5%, which is what many people call "punitive redemption fee".

For example, Huatai Bairui Quantitative Enhancement Hybrid Fund (000 172).

As can be seen from the above figure, if it is held for less than 7 days, at least an extra redemption fee of 1% will be paid. That is to say, if the same 1000 yuan is redeemed within 7 days, at least the redemption fee of 10 yuan needs to be paid more.

So for those investors who like to play short-term speculation, regardless of whether your operation will be successful every time, the handling fee contributes a lot to many transactions. So this is also a very important reason why San Sijun does not recommend daily trading funds.