When choosing a fund to make a fixed investment, it is generally recommended to choose a fund with relatively large fund fluctuations and high risks to make a fixed investment. Such as index funds, stock funds and hybrid funds. Because the fluctuations of these funds are relatively large, the decline of funds in the bear market is relatively deep, and the fixed investment of funds can reduce the buying cost. When the bull market comes, the net value can rise sharply by virtue of the advantage of high positions, which can provide higher returns.
In addition, when the fund fluctuates greatly, it may generate floating income. The greater the fluctuation, the greater the profit and loss, and the fixed investment of the fund belongs to batch admission, which can achieve the effect of cost sharing. The famous smile curve means taking advantage of fund fluctuations to earn income.
When the market falls, through the fixed investment of the fund, we will continue to accumulate low-cost chips. When the market goes up, there is a chance to get better returns. The fixed investment of the fund is generally based on the long-term investment income of the fund.
However, it should also be noted that although the essence of the fund's fixed investment is to share risks equally, all funds are risky, and the same is true of the fund's fixed investment, which is also risky. Therefore, when you make a fixed investment in the fund, you should also pay attention to risks and proceed from your own risk tolerance. If the fund's loss is out of range, it is necessary to consider timely stop loss.