It is generally believed that the fund is suitable for long-term holding, because if the fund is bought and sold repeatedly, the subscription fee, redemption fee and custody fee are not small. Moreover, many funds will stipulate at the time of purchase that the longer they hold, the lower the transaction rate. However, the fund will go up and down every day. If we can buy low and sell high at the right time, the comprehensive growth value will far exceed the long-term defense. Is the fund suitable for long-term holding?

First, in terms of cost, long-term holding has advantages over short-term holding.

Fund expenses generally include two categories:

One is the expenses generated in the process of fund sales, which are borne by fund investors themselves, that is, subscription fees, redemption fees and fund conversion fees, and their rates generally decrease according to the holding period. The other is the expenses incurred in the process of fund management, mainly including fund management fees, fund custody fees, information disclosure fees, etc. These fees are often charged on a daily or per-time basis, which has little to do with the holding time.

Second, if the fund is held for a long time, the capital efficiency is low.

Although the growth of star funds can be doubled in one year, for ordinary people, who can know whether the fund in their hands is the next "star"? Lao Wang heard that a person around him has been holding a fund for 20 years, and now he can't stop because of the excessive time cost. If you feel that the performance of the fund in hand is not satisfactory, it is better to make a decision as soon as possible. Or discover new potential funds, and also move money out of those funds with poor long-term performance to open positions.

Third, index funds cannot be blindly held for a long time.

Index fund is a fund whose task is to track the performance of the underlying index, and its investment targets are often the constituent stocks of some large-cap indexes. Generally speaking, the index fund aims to reduce the tracking error, make the change trend of the portfolio consistent with the underlying index, and thus obtain roughly the same rate of return as the underlying index.

Generally speaking, holding index funds for a long time can get "average" market returns without much time and energy, but only if the overall market situation is upward. If the market falls, why should we shrink our assets? Or when the market fluctuates, if you can grasp the market, you need to adjust the fund position in time.