What are the advantages and disadvantages of the new fund?
Advantages of 1
The new fund has no historical achievements and historical burdens. Compared with the old fund, the new fund is easier to seize the opportunity of financial investment market. The new fund can use more funds to subscribe for new shares, thus gaining more opportunities. At the same time, the new fund also has the advantages of low price and low handling fee. During the fund-raising period, the fund company will raise enough funds as soon as possible in the future and discount the rate.
2 shortcomings
When the market rises, it is difficult for new funds to keep up with the market, and there is no way to rise in time to bring more benefits to investors. Moreover, the new fund has a long opening period, and it is difficult to estimate the market situation when the fund goes public. In addition, the new fund has no past performance as a reference, and there are many uncertainties.
Generally speaking, everything has two sides, and natural new funds also have advantages and disadvantages. It should be noted that the fund implements the expert management system, and its existence itself has many risks. The purpose of fund investment is to preserve and increase the value of fund assets. If inflation occurs, the income of the fund's investment in securities may be offset by inflation, thus affecting the preservation and appreciation of the fund's assets.