In the investment market, long-term and short-term are very common words, such as long-term fund and short-term fund. Many people don't quite understand these two words. I wonder what they mean. Let's look at the analysis.

What do you mean by long-term and short-term funds?

Long-term means long-term holding, and short-term means short-term holding. In fact, short-term and long-term funds are relative concepts, and there is no absolute definition. Whether it is long-term or short-term, the key is to look at the time when investors hold this fund. One year is generally regarded as long-term and one month as short-term.

Relatively speaking, funds are more suitable for long-term operation, that is, long-term holding. There are several main reasons:

First, the success or failure of short-term trading depends on accurate prediction and analysis. It is difficult for people to make accurate analysis and always make mistakes, which is uncertain.

Second, holding funds in the short term is basically unprofitable, because the trend of funds is relatively stable, and the handling fee for selling funds in the short term is high, so the money earned may not be enough to pay the handling fee.

After reading the above introduction, I believe you have a deeper understanding of the long-term and short-term funds. The fundamental difference between long-term funds and short-term funds lies in investors' ideas, ideas and operating methods.