When many investors start investing in funds, they will more or less hear people around them recommend making fixed investment in funds, but they don’t know why they need fixed investment in funds. Can’t they also invest in funds in one go? Fixed investment is a long-term and effective fund investment method, which has many advantages over one-time purchases.

Why do funds need fixed investment?

Investors have the following three major advantages when investing in funds:

1 Effectively avoid "chasing the rise and killing the fall"

For investors, the biggest The enemy is actually oneself. In the face of the volatile fund market, one may choose to "chase the rise and kill the fall", or "operate frequently" due to uncertainties, or "choose the wrong fund product". It is difficult to control oneself in the face of declines and losses. What choices will be made. So why can fund fixed investment avoid this kind of wrong operation? Fund fixed investment is a kind of long-term automatic management. After investors scientifically decide on the fund, they invest a fixed amount of money according to a fixed date, so they don’t need to pay too much attention for the time being. This effectively prevents investors' personal emotions from randomly affecting their buying and selling of funds.

2 Amortize the purchase cost and smooth the time risk

When it comes to fund fixed investment, the "smile curve" is generally mentioned, that is, the market goes through a wave of decline first and then rebound. In this process, investors who invest in the fund can obtain chips at a lower cost when the market is down, dilute costs and accumulate more shares; in this way, when the market picks up, investors will receive generous returns. Therefore, fund fixed investment is a regular investment, no matter the rise or fall, the cost is amortized. When the bull market comes and the net value rises, you can make a profit by redeeming it.

3 The threshold and time cost are relatively low

First of all, the threshold for fund fixed investment is relatively low. Generally, investors can choose 100 yuan, 10 yuan, or even 1 yuan according to their own choices. You can start your own fixed investment plan; in addition, since the fixed investment plan is set up, automatic deductions will be made. As long as the balance in the debit account is sufficient, investors do not need to pay attention to the market and ten points all the time, which saves time and Save effort.

In general, investors can effectively take advantage of the fund's fixed investment in small amounts, risk diversification, and average cost for financial planning, insist on long-term investment, and through the power of compound interest, small money can turn into a large sum. wealth. However, before investing money in funds, investors must consider whether their savings are sufficient, whether they have enough spare money every month, and whether they are pursuing long-term holding profits.