Funds with large fluctuations have a better chance to accumulate more low-priced stocks during the decline of net value, and can make quick profits when the market rebounds. However, if the deduction starts from a high point and the redemption unfortunately hits a low point, then even if the risk of entering the market is dispersed regularly, the income will not increase.
Funds with stable performance have small fluctuations and generally do not encounter the problem of low redemption, but the relative average cost will not drop too much and the profit is relatively limited.
In fact, the time compound interest effect of long-term fixed investment disperses the short-term risk of long-term stock market and fluctuating fund net value. As long as we can adhere to the principle of long-term deduction, choosing a fund with large fluctuations can really improve the income, and the long-term return rate of a fund with high risk should be better than that of a fund with low risk. Therefore, if the long-term financial management goal is more than five years to ten or twenty years, it is advisable to choose a fund with large fluctuations, while if it is within five years, it is best to choose a fund with stable performance.