During the holiday,we cannot see the net value fluctuations of funds.Will the funds we have purchased still generate returns during the holiday?

Let's take a look at the situation for different types of funds during the holiday.

Money Market Funds

Usually,it is necessary to invest in money market funds before the holiday to enjoy the returns during the May Day holiday.Taking this May Day holiday as an example,you need to purchase before 3 PM on April 27,2023.

If you have missed the opportunity to invest in money market funds,don't worry,you can read on.Bond Funds

Before 3 PM on Friday,April 28th,investing in some bond funds can also yield holiday returns.During the holiday,short-term bond funds do not update their net asset values,but bonds still accrue interest and other earnings.Therefore,on the first day after the long holiday,pure bond funds generally rise to make up for the holiday earnings.

Stock Funds

Stock funds do not update their net asset values during the holiday.However,one can make a rough judgment by observing the fluctuations in market indices such as the Hong Kong stock market and the U.S.stock market.

For instance,in the U.S.stock market,there are index funds that invest in A-shares.

ASHR is an index fund that corresponds to the CSI 300 Index of A-shares.The price change of ASHR during holidays can be roughly regarded as the view of U.S.investors on the rise and fall of A-shares.

Another example is the representative FTSE China A50 Index.

This index selects the 50 largest market capitalization stocks from the Shanghai and Shenzhen stock markets and adjusts its components once every quarter.

Overall,the market value of these 50 constituent stocks accounts for about one-third of the total market value of all companies in the A-share market.

Its ups and downs can reflect the general fluctuation range of the A-share market.During holidays when the A-share market is closed,there are overseas markets with index funds,futures,and options that track the A50 index.Observing them can give a rough idea of the ups and downs of the A-share market during the holidays.

If throughout the holiday,both the Hong Kong and U.S.stocks experience significant gains,the profits will not be lost.After the holiday ends,it is highly likely that the A-shares will make up for the increase,which will be reflected in the first trading day after the holiday.

If throughout the holiday,the Hong Kong and U.S.stocks ultimately show little fluctuation,then after the holiday ends,the impact on the A-shares will also be reduced.

Of course,a simpler and more convenient method is to check the valuation table updated by Screw.

When it comes to the night before the A-share market opens next Wednesday,Screw will also update the overall fluctuation situation of various markets during the holiday and update the valuation table as well.Summary

Before each holiday,friends often ask whether we should hold stocks or funds during the holiday.

In fact,we do not sell the funds in hand just because of the holiday.Otherwise,we would frequently buy and sell the funds in hand many times a year,unnecessarily increasing a lot of transaction costs.

Buying stocks is like buying a company,and buying funds is akin to purchasing a basket of stocks and other assets.In real life,which big boss sells and buys the companies in hand every holiday?Investing is also like this; we will still patiently hold and enjoy the returns before it gets too expensive.