Benefit 1: spread risks.
A significant benefit of the fixed investment of the fund is to spread risks. Due to the regular purchase of fund shares, investors can purchase in a fixed amount when the market goes up and down, so they can get more fund shares. When the market falls, the fund price is lower and the subscription share is more, which helps to reduce the overall investment risk. When the market rises, investors can also get more returns from the funds they hold. The fixed investment of the fund helps investors to stabilize their investment income in market fluctuations.
Benefit 2: Long-term investment income
The fixed investment of the fund is a long-term investment strategy, which can make use of the "time cost" to obtain more income through regular investment. Even in the case of market fluctuation, investors who hold funds for a long time can get higher returns when the market trend is good. Through long-term fixed investment, the impact of market fluctuation on investment income can be reduced, thus achieving long-term stable growth.
Benefit 3: low threshold and strong flexibility.
Fixed investment funds usually have no minimum investment requirements, which greatly lowers the investment threshold and allows more people to participate in fund investment. The fixed investment of the fund also has high flexibility. Investors can freely choose the amount and frequency of fixed investment according to their financial situation and risk tolerance. Investors can adjust according to their own needs to meet their own investment goals.
Benefit 4: Automated operation
Generally, the fixed investment of funds can be automatically deducted by banks and fund companies to realize the automatic operation of fixed investment. This way saves the trouble of investors' manual operation and avoids investors making wrong investment decisions because of negligence or emotional fluctuation. Automated operation can also help investors maintain discipline and avoid impulsive investment behavior due to market fluctuations.
Benefit 5: low-cost investment
The fixed investment cost of the fund is usually low, which benefits from the expansion of the fund scale and the characteristics of regular fixed investment. The expansion of the fund scale makes the fund management cost relatively low, and regular fixed investment also reduces the risk of investors buying at a high price or selling at a low price due to market fluctuations. Fixed investment of funds is a low-cost investment method, which can help investors get better return on investment.
Disadvantages of fixed fund investment:
Disadvantage 1: Market risk
The fixed investment of the fund is not a completely risk-free investment strategy. Although risks can be dispersed through regular investment, investors may suffer sustained losses if the market continues to fall. Investors need to consider market risks and formulate appropriate investment strategies when making fixed investment in funds.
Disadvantage 2: Lack of flexibility.
Although the fund's fixed investment is flexible, investors cannot redeem it during the fixed investment period. If investors need funds urgently during the fixed investment period, they may not be able to withdraw the investment funds in time, which may have a certain impact on the financial situation of investors.
Conclusion:
As a long-term investment strategy, fund fixed investment has many advantages, such as risk diversification, long-term investment income, low threshold, strong flexibility, automatic operation and low-cost investment. Investors should also realize that there are still market risks and lack of flexibility in the fund's fixed investment. Investors need to comprehensively evaluate their investment objectives and risk tolerance and make corresponding investment plans when making fixed fund investment.