What are the advantages and disadvantages of the fixed investment of the fund?
1 Advantages of the Fund's Fixed Investment
1. Simple procedures: For fixed-term investment funds, investors only need to go through the one-time procedures at the fund agency, and then automatically deduct and subscribe for each period, usually on a monthly basis, but there are 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. Time-saving and labor-saving: After handling the fixed investment of the fund, the institution will automatically withhold the corresponding fund subscription funds on each fixed date, and investors only need to ensure that there is enough funds in the bank card, saving time and energy in going to the bank or other institutions.
3. Fixed investment on a regular basis: investors may have some idle funds every once in a while, and the value-added (or value-preserving) investment through the fixed investment plan can "accumulate sand into mountains" and accumulate a lot of wealth unconsciously, which is a powerful support for the increasingly rapid economic development of China.
4. There is no need to consider the timing: 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 timing of entry, market prices and long-term investment decisions on its short-term fluctuations.
2. Disadvantages of fixed fund investment
1. Unable to grasp the market from time to time: The disadvantage of fixed investment is that it cannot grasp the market from time to time. If the market is in a period of decline, the fixed investment will make investors lose money continuously and cannot be sold in time.
2. The cost of fixed investment is high: the fixed investment of the fund will generate certain formalities and management fees. The higher the frequency of fixed investment, the higher the cost.
3. Unable to select individual stocks: only fund products can be selected for fixed investment, and individual stocks or bonds cannot be selected. If a fund product does not perform well, investors' income will also be affected.