First, reduce the subscription and redemption costs.
As we all know, when investing in a fund, you need to pay corresponding fees for both fund subscription and redemption, which is not a small investment cost for high fund investors. Short-term fund investments will be redeemed many times, so you have to pay more fees.
Second, short-term fund investment can't make money, and it will also lose commissions.
The ultimate goal of fund investment is to obtain expected returns and obtain higher expected returns within their own risk tolerance. However, due to the short investment time of short-term investment funds, in most cases, the expected return of funds will not change significantly. Short-term investment will appear to a large extent, not only not making money, but also losing fees in vain. Therefore, unlike stock investment, in many cases, fund investors are more willing to make long-term investments to maximize the expected return of the fund.
Third, the types of investment funds are more suitable for long-term investment.
We know that the expected return of a fund depends on its net value. For low-risk investment funds, the expected return is basically fixed and lower than other types of funds. On the one hand, with the increase of holding time, fund companies will reduce the subscription and redemption costs; On the other hand, the expected return of long-term stable fund investment will be higher than that of general short-term investment.
The above are some of the contents that investment funds are more suitable for long-term investment, and I hope to inspire you. Warm reminder, financial management is risky and investment needs to be cautious.