A Question "Easy" Answer: How To Seize The "Golden 20 Days" Of Buying Funds?

Easy answer: "Gold 20 days" whether to hold, will determine the investment performance.

Many investors are keen on "selling high and absorbing low" when buying funds, and regard funds as stocks to "fry".

It is difficult to choose the right time for stocks and funds. Even for professionals, it is difficult to maintain a high timing success rate for a long time.

The reality may be that, at the right time, we didn't avoid the fall and missed the rise.

Looking back on the earnings of major A-share and US stock indexes from 2011 to 2020, most of these indexes have annualized returns of more than 5%.

However, after excluding the best 20 trading days (known as "Gold 20 days"), the index's earnings are greatly discounted, and even some indexes show a loss state.

This means that once we miss the trading days with the biggest gains because of timing, it will have a great negative impact on the return on investment.

Therefore, for ordinary investors, long-term holding of funds is the simplest and most effective way to invest. In the "Gold 20 days" of market rise, they should ensure that they are "on board".

If you really can't control the timing desire, try a fund with a closed period or holding period limit.

What is the difference between "closed", "regular open" and "year / * * month held" in the name of a fund?

Knowledge patch:

Under normal circumstances, open-end funds can be purchased and redeemed on the normal trading days of the exchange (after the establishment of new funds, there is usually a closed period of no more than 3 months, which cannot be redeemed during this period).

"Closed", "regularly open", "held for * * years / * * months" are all descriptions of the operation mode of the fund“ "Closed" means that the redemption will not be opened during the term of the fund contract“ "Regular opening" means regular opening for redemption** "Year / * *" means open subscription, but each fund unit purchased by investors must meet the minimum holding time requirement before redemption.

1、 Funds marked "closed" cannot be purchased, redeemed or transferred out during the period of closed operation.

2、 The operation period of funds with "regular opening" can be divided into "closed operation period" and "open operation period". During the closed operation period, the fund can not be purchased, redeemed or transferred out; After the end of each closed operation period, it will enter the open operation period. During the open operation period, you can apply for purchase, redeem and transfer out.

3、 Funds marked with "held in * * years / * * months" can be purchased on normal open days, but the minimum holding period for each fund unit shall be set. That is to say, for each fund unit, when the investor holding time is less than the minimum holding period, it can not be redeemed or transferred out; When the holding time is greater than or equal to the minimum holding period, the investor can redeem or convert.