Can the fund reduce the cost by throwing high and sucking low?
Yes, but it is not recommended to do so often here for the following reasons.
High handling fee of 1:
Funds can indeed reduce costs by buying low and selling high, but it must be noted here that the transaction costs of OTC funds include subscription fees and redemption fees, which makes the transaction costs of funds obviously different from those of stocks.
Especially each redemption fee, if the time is short, the rate will be higher. In general, the longer the fund is held, the lower the redemption fee. If the specified number of days is exceeded, the redemption fee will no longer be charged, so the transaction cost will rise sharply.
Some funds bought in the market do not have this concern, but there is another factor to consider.
2 small fluctuations in funds:
Compared with the rise and fall of stocks, the fluctuation of funds is small, and frequent "selling high and sucking low" can not reduce the cost of holding positions well. If the increase is not big, it may be that the income we sell is not enough for our handling fee, so we waste our handling fee.
3 market uncertainty:
The price of OTC funds does not change in real time, and there is only one price every day. In addition, most off-exchange funds are usually based on the T+2 rule, that is, it takes two trading days to arrive after we submit the redemption application. Moreover, at the time of subscription, it is often T+ 1 or T+2 to confirm the share. When these specific accounts arrive and when the shares are confirmed depends on the specific fund rules, and different foundations have different regulations. But generally speaking, the flexibility of trading is limited.
Stocks and on-site funds are more flexible, and we can immediately make short-term judgments based on the current market. Therefore, if the market is in a stalemate and there is no clear direction in the short term, our fund will adopt a high-selling and low-sucking approach, and it is easy to lose money because the transaction is not timely.
In addition, stocks can be mutually verified according to various technical indicators, which can increase our success rate, while stock funds invest in a basket of stocks, so we usually only have a rough judgment, and the accuracy of judging the subsequent market will decline.
Compared with stocks, fund investment actually requires relatively low ability for us, which is not suitable for Vaughan's frequent operation. The soul of investment funds mainly lies in choosing fund managers and the investment research team behind them. If the fund manager has a strong ability, we can get excess returns in the bull market and reduce losses in the bear market.
Summary of fund investment experience
Funds are actually more suitable for long-term investment. Although it is a long-term investment, it also needs our timing ability. In this short market, we must seize the opportunity to take profits.
If our investment fund loses money, we need to resume trading in time. We can divide the causes of losses into human factors and non-human factors, and analyze which ones are caused by our own "chasing up and killing down" and which ones are caused by systemic risks.
At the same time, it is necessary to sort out the situation of holding funds, such as whether there are funds with the same theme, which funds were bought when chasing up, whether the fund manager has adjusted, whether the holding funds match the market direction, and whether the positions are reasonable.
The experience of fund investment is gradually accumulated, and every investment needs to sum up experience, which is a long and endless learning process.