If the fund decides to make a fixed investment, we must first make a self-understanding, whether it is a high-risk and high-expected return or a stable capital preservation with expected return.
Is the fund fixed monthly or weekly? First of all, we need to consider the difference between monthly investment and weekly investment in various situations to see who has higher expected rate of return and greater probability in different situations.
Common situations are as follows:
A. the net value of the fund has not changed.
B, I have been buying more stocks last week, and finally I expect more returns. Weekly voting is better than monthly voting;
C, the monthly investment has bought a large share, and the final loss is large. Weekly voting is better than monthly voting;
D. Monthly investments with fluctuating net worth may buy high points or low points. Fortunately, if you buy low, the expected return of monthly investment will be greater than that of weekly investment. Unfortunately, if you buy a higher price, you may lose money every month.
The following is an analysis of the above situation:
First, this situation has never happened.
Both b and c are expected to lose more.
D. this situation is the most common. In most cases, the expected income is greater than or equal to the monthly investment, and in a few cases, the expected income is less than the monthly investment.
To sum up, weekly voting is smoother than monthly voting, and in many cases it is better than monthly voting.
In the long run, if the time is long enough to really cross the whole bull-bear cycle, because the monthly investment has also experienced enough cycles, then the expected rate of return is definitely similar to that of the weekly investment.
Therefore, my suggestion is not to choose a fixed investment cycle too long, otherwise the number of periods will be less and the risk will be great. If possible, it is best to vote once a week or once a day! But don't go to extremes. In order to reduce the risk, you want to make a fixed investment every minute, which becomes buying stocks. )
The above is only aimed at theoretically smoothing risks and increasing the possibility of expected returns. It is better to discuss weekly investment than monthly investment.
However, it is really necessary to choose whether to vote weekly or monthly according to your own reality.
For example, your income balance is not much, and your income is monthly income. Of course, you choose to make a fixed investment every month. If you have a wide source of income or a large amount of funds, it is recommended to make a fixed investment every week in order to smooth the risk. It is always an opportunity to invest in stock funds to make a fixed investment, but only if you have the determination to persist can you see the effect.
In any case, I have to tell you that investment is risky, so think twice before you act!