The fixed investment of a fund is to invest in a specific fund according to a predetermined period and amount. Its advantage lies in diluting the cost by extending the investment period, which is a slippery risk. Its essence lies in automatically reducing the subscription share when the net worth is high and automatically increasing the share when the net worth is low. In the environment where the bull is short and the bear is long, it can be guaranteed to purchase more stocks when the net worth is low, thus reducing the overall subscription cost. The premise of effective fixed investment strategy lies in the change of fund net value, that is to say, the more drastic the price change, the more obvious the effect of fixed investment strategy. It can be assumed that in extreme cases, if a fund is 1.000 yuan per day without any fluctuation, then the effect of fixed investment and single investment is the same. Therefore, when choosing a fixed investment fund, you must choose a fund with large fluctuations in net value. Before screening the funds suitable for fixed investment, let's first understand the types of funds.
According to the different investment objects, funds can usually be divided into five categories:
1. money fund: refers to the fund specially used for investing in the money market. Its risk is extremely low, and its income (never losing money in history) is relatively stable, basically maintaining at around 4%. Therefore, such funds have low risks, low returns and small fluctuations. Fixed investment is not as good as one-time investment, and fixed investment is meaningless.
2. Bond fund: More than 80% of the funds are invested in the bond market, which is also a low-risk and low-yield wealth management product. Bond funds mainly invest in government bonds, corporate bonds, corporate bonds and other bonds. Debt-based income is slightly higher than that of money funds, and the risk is small.
3. Hybrid funds: you can buy both bond funds and equity funds and other wealth management products, which can be more market-oriented and constantly adjust the fund holding ratio. It has the attributes of flexible operation, risk diversification and overall income improvement. This kind of fund has high risk, high income and great fluctuation.
4. Equity funds: As the name implies, 80% of the funds are mainly invested in the stock market, which has the characteristics of high risk and high return, and is more suitable for radical investors with large short-term fluctuations.
5. Index fund: a fund product with a specific index as the target and tracking the performance of the index as the investment target. It has the characteristics of small short-term fluctuation and obvious long-term trend. Secondly, index funds are passive funds, which do not need the active intervention of fund managers, and their relative costs are lower than other funds.
Judging from the characteristics of the above-mentioned fund classification, it is necessary to choose funds with large fluctuations in net value for fixed investment. Among the above five types of funds, equity funds and hybrid funds are obviously the two types that best meet the volatility characteristics of fixed investment. As for whether the index fund is worth a fixed investment, investors with different personalities have different views. Investors in favor of fixed investment believe that index funds have high risks, and adopting fixed investment can avoid some risks. Investors who disapprove of fixed investment believe that index funds have small short-term fluctuations and are passive funds, so fixed investment is of little significance.
After the fixed investment fund, the essence is nothing more than giving the money to the experts, and the performance of the investment directly depends on the moisture of the experts' investment in the stock. In the long run, there are very few stock investors who can get a big market. In this case, it is difficult to guarantee a satisfactory rate of return on investment in equity funds. Therefore, investors who want to make long-term fixed investment should carefully distinguish when choosing fund companies and choose products with better returns. Before, I also introduced the specific options that can be combined with the fixed investment of ICBC Fund.