Is it suitable to buy funds on Friday? Maybe many people who have just entered the fund market have such questions, so what exactly are funds? When is the better time to buy? Here are the disadvantages of buying funds on Friday brought to you by the editor. I hope you like it.
What are the disadvantages of buying funds on Friday
Weekend effect: In some cases, market sentiment on the eve of the weekend may be relatively cautious or conservative, and investors may tend to Selling risky assets early on Friday may cause the fund's net value to fall.
Weekend risk: After buying a fund, you will not be able to actively adjust the fund's performance or exit within the next day or two. If there is a major market move or good news over the weekend, you won't be able to take immediate action to deal with it.
Monday’s market volatility: During the weekend break, domestic and foreign economic events and news may accumulate, which may lead to increased market volatility on Monday, and the fund’s net value may experience larger changes.
Means of purchasing funds
Online fund platforms: Funds can be purchased conveniently through online fund platforms, such as online trading platforms of securities companies, third-party fund sales platforms, etc. These platforms usually provide detailed fund information, rates, risk tips, etc., and support online subscription and payment.
Fund sales agencies: You can directly go to fund sales agencies, such as bank counters, fund company sales departments, etc., to consult with sales staff and purchase funds. Sales staff will provide relevant fund consultation and suggestions and assist you in completing the purchase process.
Financial advisor or financial planner: If you need more detailed investment planning and advice, you can consult a financial advisor or financial planner. They will provide professional fund selection and purchasing advice based on your needs and circumstances.
Is it suitable to buy funds on Friday?
Generally speaking, it is OK to buy funds on Friday, but whether it is suitable to buy funds also needs to consider the following fund knowledge:
Investment Goals and Timing: What are your goals for buying a fund? If investing for the long term, buying a fund on a Friday may not have an immediately noticeable impact since funds typically end the trading day Calculate the transaction price based on the net value at that time. However, if you plan to make short-term trades or pursue short-term gains, Friday's market volatility may have a greater impact on fund prices.
Market risk: On the last trading day before the weekend, investors usually perform settlement, position adjustment or hedging operations, which may lead to increased market volatility. In addition, the market is closed on Saturdays and Sundays, making it impossible to adjust positions in time. This means that funds purchased on Friday will be affected by market conditions on Monday.
Personal risk tolerance: Investment in funds involves certain risks, including market risk, fund manager ability risk, etc. Before deciding to invest, it is important to understand your risk tolerance and do a good risk assessment.
In general, there is no specific date to buy a fund. More importantly, you need to make decisions based on your personal investment goals, risk tolerance, and market conditions. It is recommended that before buying a fund, you carefully study the fund's investment strategy, historical performance, fees and other factors, and fully consider your own investment needs and risk tolerance. If necessary, it is recommended to consult a professional financial advisor or investment institution.
Do funds usually be bought on Friday?
It is not recommended to buy funds on Friday. The fund implements T+1 trading. If you buy a fund on Friday, the share will be confirmed on the next Monday. The calculation will not be done until the share is confirmed. The income is equivalent to a two-day blank period, and the fund mainly invests in stocks. There may be bad news during the two days on the weekend, causing the stock to fall, causing the invested fund to lose money.
Fund trading hours: Monday to Friday 9:30-11:30 am, 13:00-15:00 pm, no trading on statutory holidays.
How to buy funds?
Steps to buy funds: Choose funds, choose cross-industry index funds or other lower-risk fund products. When purchasing a platform, it is best to purchase through a fund company or official channels. Determine the purchase amount and complete the payment. Fund, in a broad sense, refers to a certain amount of funds established for a certain purpose. It mainly includes trust investment funds, provident funds, insurance funds, retirement funds, and various foundation funds. From an accounting perspective, funds are a narrow concept, meaning funds with specific purposes and uses. The funds we mention mainly refer to securities investment funds. Funds are a form of financial management with lower risks than high-risk financial management such as stocks. The steps to buy funds are as follows: 1. Select funds. If you are a novice, you can choose cross-industry index funds or other lower-risk fund products. 2. When choosing a purchasing platform, it is best to purchase through the official channels of a fund company, bank or other formal third-party fund agency company. 3. When buying, confirm the purchase amount and complete the payment. It is difficult for ordinary investors to grasp the correct investment timing at the right time. They may often buy at the high point of the market and sell at the low point of the market.