It has the function of automatically increasing the price and reducing the price on dips. No matter how the market price changes, it can always get a relatively low average cost. Therefore, regular fixed investment can smooth the peaks and valleys of the fund's net value and eliminate market fluctuations. As long as the selected funds grow as a whole, investors will get relatively average returns without worrying about the timing of entering the market.
Extended information long-term investment in emerging markets or small stock-based overseas funds with large fluctuations in performance, because the stock market callback time is generally long and slow, but the stock market with a long rise time rises rapidly, investors can often accumulate more fund shares when the stock market falls, thus obtaining a better return on investment when the stock market rebounds.
According to Lipper Fund data, as of the end of June 2005 to the end of June 2008, the average return rate of investors who have continuously deducted money to invest in any emerging market or small company stock fund in these three years is at least 23%.
Baidu Encyclopedia-Fund Fixed Investment