Analysis The initial decline in fund fixed investment is not always bad news
From an accounting perspective, funds are a narrow concept, meaning funds with specific purposes and uses. The funds we mention mainly refer to securities investment funds. The editor has compiled here that the initial decline in fund fixed investment is not always bad news for your reference. I hope you will gain something from the reading process!
The initial decline in fund fixed investment is not always bad news
Many people cannot bear to see the market drop after starting a fixed investment plan, and start to worry and blame themselves as soon as there is a "floating loss" in their account. In fact, the market decline in the early stage of fixed investment is not always a bad thing. On the contrary, you can obtain more fund shares in the same fixed investment operation, achieving the effect of "accumulating more chips at a low level", thereby reducing the average purchase cost during the entire fixed investment period.
We also discovered an interesting phenomenon. Due to the early decline of Fund B, investors were able to accumulate more chips at a lower cost, so its fixed investment return curve was realized on the fund’s net value curve. "Beautiful upward shift"; and the purchase cost of Fund A has been rising, so the fixed investment income curve has "slipped" based on the net value curve.
Negative factors and positive factors in the fund market
Multiple factors cause market fluctuations, but equity assets still have long-term investment value.
In the short term
After the Spring Festival, the U.S. 10-year Treasury bond yield once rose to 1.64%, and rising global inflation expectations have made the market worried about inflation and tightening liquidity. The obvious heating up, coupled with the excessive growth rate of core assets in the early stage and valuation preference, triggered a sharp correction in A shares.
In the medium and long term
China adheres to the high-quality development path, and the "14th Five-Year Plan" has determined a new pattern for high-quality development of the capital market. The continuous improvement of the capital market system has given equity assets long-term investment value. Focusing on the concept of green finance development, the "carbon neutrality" goal matches the domestic and international dual cycle pattern and the development goals of the "14th Five-Year Plan", bringing investment opportunities in more high-quality tracks such as renewable energy and technology.
Facing market fluctuations, there is no need to panic
Volatilities are the norm in the capital market.
First of all, we need to clearly realize that humans cannot accurately predict the short-term rise and fall of the stock market. In this case, don't sell your chips easily because of temporary panic.
Secondly, returns and risks exist in investment, and market fluctuations are normal. If you look at it over a long period of time, the short-term decline is actually just a small wave in the ocean.
Looking closely at the past two years, from 2019 to now, the most adjustment of the CSI 300 has reached 17%, there have been 4 adjustments exceeding the -10% level, and 7 adjustments exceeding the -5% level. Second-rate. Throughout history, the stock market of a country in a period of rising national fortunes can bring considerable long-term returns, and being long on China has become common knowledge around the world.
The meaning of trust fund
Trust fund, also called investment fund, is a collective investment method with "maximum benefit sharing and maximum risk sharing": it refers to the investment through contract or In the form of a company, by issuing fund certificates (such as income certificates, fund units and fund shares, etc.), the funds of the majority of uncertain investors in the society are pooled in unequal amounts to form a certain scale of trust assets, which are handed over to specialized A collective investment trust system in which investment institutions carry out diversified investments according to the principle of asset portfolio, and the profits obtained are shared by investors in proportion to their capital contribution and bear corresponding risks.