The type of fund suitable for fixed investment refers to investing a certain amount of money into the fund on a regular basis every month. The types of funds suitable for fixed investment should be stable, low-risk and stable in return. Generally speaking, bond funds, index funds and hybrid funds are all suitable for fixed investment.
Bond fund bond fund is a fund that invests in the bond market, and its investment goal is to obtain stable interest income. Because the risk of bond funds is low, it is suitable for long-term fixed investment. The yield of bond funds is relatively stable, which can provide a certain degree of capital preservation.
Index fund index fund is a fund that invests in the stock market, and its investment goal is to track the performance of an index. Because the investment strategy of index funds is relatively simple and the management cost is relatively low, it is suitable for long-term fixed investment. Because the investment strategy of index funds is similar to the market, the risk is low and it is suitable for fixed investment.
Hybrid fund hybrid fund is a fund that invests in stock market and bond market, and its investment strategy is flexible. Due to the diversification of investment strategies, hybrid funds can reduce risks when the market fluctuates and are suitable for long-term fixed investment. The yield of hybrid funds is relatively stable, which can provide certain capital preservation.
How long is the appropriate time for fixed investment? How long a fixed investment should be based on personal investment purpose and risk tolerance. Generally speaking, the fixed investment must last for at least one year in order to obtain relatively stable income. If the investment purpose is long-term investment, the fixed investment time can be as long as several years or decades. If the investment purpose is short-term investment, the fixed investment time can be shorter than one year.
To sum up, the types of funds suitable for fixed investment are generally stable, low-risk and stable, such as bond funds, index funds and hybrid funds. The fixed investment time depends on the individual investment purpose and risk tolerance. Generally speaking, it will last at least one year. Through long-term fixed investment, we can obtain stable income, at the same time spread risks and reduce the risk of personal investment.