What fund should the fund choose?
The advantage of fixed investment is to dilute the cost and smooth the risk by extending the investment period. Its essence lies in automatically reducing the subscription share when the net worth is high and automatically increasing the share when the net worth is low. In an environment where the bull is short and the bear is long, you can purchase more stocks when the net worth is low, thus reducing the overall purchase cost.
After a little in-depth thinking, we will find that the effective premise of fixed investment strategy lies in the change of fund net value, that is, the more drastic the price change, the more obvious the effect of fixed investment strategy. We can assume an extreme situation. If a fund has no fluctuation and its daily net value is 1 yuan, then the effect of fixed investment and single investment is the same.
Based on this, the answer is already obvious: the fixed investment should choose funds with large fluctuations in net value. Among the types of funds, stock funds and hybrid funds are obviously the two that best meet the volatility characteristics of fixed investment. Therefore, the Fund can choose stock funds and hybrid funds with greater volatility. The choice of stock funds and hybrid funds can be screened according to the long-term performance of funds and the situation of fund managers.
Of course, index funds are also suitable for fixed investment. Index funds copy the market index and buy stocks according to the constituent stocks and proportion of the index, so that the trend of the fund is consistent with the index. The index fund suitable for the public is a broad-based index fund, which contains many industries and has little fluctuation, and is suitable for long-term fixed investment.