The fixed investment of the fund is similar to long-term savings, which can spread the investment cost evenly and reduce the overall risk. 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 data
Advantages of fixed fund investment:
1, simple program
Fixed-term investment funds only need investors to go through the one-time formalities at the fund agency, and then they will automatically deduct the subscription for each period, usually on a monthly basis, but there are also other time limits such as semi-monthly and quarterly as regular units.
In contrast, buying a fund by yourself requires investors to go through the formalities in person at the agency every time. Therefore, the fixed investment fund is also called "lazy financial management", which fully embodies its convenient characteristics.
2, save time and effort
After handling the fixed investment of the fund, the institution will automatically withhold the corresponding fund subscription funds on each fixed day. Investors only need to ensure that there are enough funds in the bank card, which saves time and energy to go to banks or other institutions.
3. Conventional investment
Every once in a while, investors may have some idle funds. The value-added (or value-preserved) investment through the fixed-investment fund investment plan can accumulate a lot of wealth unconsciously, which is a powerful support for the increasingly rapid economic development of China.
4. Don't consider time.
The key to investment is "buy low and sell high", but few people make a profit by grasping the best trading point when investing. In order to avoid this artificial subjective judgment error, investors can invest in the market through the "fixed investment plan", regardless of the market entry time, market price and long-term investment decision on its short-term fluctuation.
5. Average investment
The capital is invested in stages, with high and low input costs and relatively low long-term average, which maximizes the diversification of investment risks.
Baidu Encyclopedia-Fund Fixed Investment