Why not suggest buying a new fund?
There are two main reasons why buying a new fund is not recommended. First, new funds are generally issued at the hottest time in the market, so the fund sales at this time are the best, but investors who enter the market are often stuck in a high position. The second point is that the management level and performance of fund managers of new funds are not clear, so investors mostly gamble blindly when buying new funds. Therefore, many investors do not recommend buying new funds.
For a new fund, if it is issued in a bear market and there are fewer investors, it is difficult for the new fund to raise funds; None of this is a problem when the new fund chooses to issue in a bull market. In the bull market, if the new fund is issued early and the opening time is over, investors can get a lot of income. If investors buy late, they will be at the high level of the fund after buying.
Benefits of buying a new fund
The new fund has no history, low net worth and large room for growth. The net value of funds tends to rise faster than that of old funds. However, if it is in a downward state, the loss of the new fund will be less than that of the old fund.
In the long run, because the new fund has more room and ability to grow than the old fund, its expected income level will rise faster.
At the beginning, the subscription price of the new fund is relatively low, the share will be more and there will be more room for appreciation.
New fund purchase risk
The situation of the new fund is not clear, and there is no historical record to learn from, so there is no way to value it through the past value, and its risk will be greatly enhanced.
Generally speaking, the old fund has an advantage in time, and it is easier to gain the trust of the people, while the new fund is more difficult. For new funds, old investors will be more cautious, while new investors will generally choose large funds with good reputation and popularity at the beginning.
The stability of the new fund is relatively poor, and investors bear higher risks.
To sum up, new funds are generally not recommended to buy, but if it is the first time to buy, you can still earn good returns. All of the above are about "Why not recommend buying a new fund? The benefits and risks of buying a new fund. " I hope it helps you.