Is it worth buying new funds?


In recent times, many new funds have been launched in the market, and some investors are enthusiastic about snapping them up. Some investors are a bit hesitant in the face of new funds, is it worth buying a new fund or not? After a new fund is launched, there is a few months of build-up period before the official trading. This is because the new fund will get a lot of money when it is first listed, and these funds will be put into the market by the fund manager in batches, and the whole process will last for three months at most.


As a result, there will be a delay in when the investor's money is invested in the market compared to when the new fund was purchased. During this build-up period, investors are likely to miss an upturn in the stock market, thus bringing risk and uncertainty to the investment. Second, some new funds have a period of closed operation to prevent frequent trading. Therefore, investors who intend to buy new funds need to arrange their funds in advance to prevent the daily liquidity of their assets from being affected by the purchase of a new fund. Of course, new funds also have advantages, such as the net value of newly launched fund products will be relatively cheap, generally, the net value of new fund offerings is only a few dollars, bearing in mind that some old funds are priced at more than ten or even dozens of times the price of new funds. But the main thing that determines whether your fund can pay is several other factors. For example, the fund's manager, the investor's investment style, etc.


Because of the instability of new funds, many investors who buy new funds are making a bet. After all, new funds have a period of build-up before the information is disclosed, and investors are unable to know some specific information about the new fund. This means that many investors buy a new fund without knowing anything about it or even knowing anything about it. On the contrary, the information and the historical performance of long-established funds can be clearly understood, which can help investors to make informed decisions on whether to make a purchase. This ensures that the risk of the investment is reduced and that this information and history is used to predict the risk resistance of the fund.


Therefore, from these aspects, both new funds and old funds have their advantages and disadvantages. New funds do not help investors gain a lot, and old funds do not necessarily lack potential. However, if you are a cautious investor, then this article still suggests you be cautious in buying new funds, after all, the risks of new funds have already been mentioned before. Even if you eventually decide to buy a new fund, you must make sure that your liquidity can be maintained, because once you have invested in a new fund, you will not be able to retrieve your invested funds at any time during the initial build-up period.