How to choose a fixed investment fund?
First, choose the right fund type.
Funds are divided into open-end funds and closed-end funds according to whether they can be redeemed at any time. Closed-end funds and fixed-term open-end funds can't be purchased and redeemed at any time, so we have to invest regularly, so this kind of fund is given priority.
In addition, although ETF funds have low transaction costs, they must be traded through stock accounts. Being too close to the market, it is easy to get out of control and operate frequently, which not only increases transaction costs, but also makes mistakes, so ETF funds can also be ruled out.
Bond funds and money funds are not volatile and are not suitable for fixed investment. Bond funds can invest when the market interest rate goes down, and money funds can make one-time investments at any time. These two types of funds do not need to be considered.
More suitable fixed investment funds can choose active equity funds, hybrid funds and passive index funds (LOF funds, ETF linked funds, etc. ).
Second, choose the right fund.
Funds that have been established for a short time can be excluded. If it has been established for less than 6 months, the fund can still open positions; If the establishment time is less than three to five years, the fund has never experienced the bull-bear cycle, and its performance ability is simply invisible;
Funds with too small a fund size can also be excluded. If the fund size is less than 50 million for 60 consecutive days, it is a mini fund. Mini-fund has the risk of liquidation, which will disrupt the fixed investment plan. If you are conservative, you can choose a fund with a fund size of more than 300 million yuan.
Don't consider funds with a high proportion of institutions. The stock market is a game market. Compared with retail investors, institutions have great advantages in all aspects. It is easy for retail investors to lose money when they choose funds with institutions.
Funds with low volatility are also not suitable for fixed investment, excluding funds with volatility less than 5%. Finally, not every fund is owned by Man Cang, and any fund whose stock position is less than half can be excluded, which makes it even more inflexible and unable to take advantage of fixed investment.
Generally speaking, the suitable targets for the fixed investment of the fund are stock index funds or active partial stock funds with the establishment time of at least 3 to 5 years, the fund scale of over 300 million, the stock position of over 50% and the low proportion of institutions. How to choose a fund for fixed investment is introduced here, hoping to help everyone.