From the perspective of investment cost, Class A funds do not charge sales service fees, but charge subscription fees. If it is held for more than two years, no redemption fee will be charged. Class C funds do not charge subscription fees, but charge redemption fees. Holding for more than seven days, the redemption rate of Class C funds is low. If it is held for more than six months, there is no redemption fee for Class C funds.
Therefore, for short-term (less than two years) fixed investment, Class C funds are more suitable, while for long-term (more than two years) fixed investment, Class A funds are more suitable.
Advantages of fixed investment
summary procedure
Fixed-term investment funds only need investors to go through the one-time formalities at the fund agency, and then they will automatically deduct the subscription for each period, usually on a monthly basis, but there are also other time limits such as semi-monthly and quarterly as regular units. In contrast, buying a fund by yourself requires investors to go through the formalities in person at the agency every time.
Save time and effort
After handling the fixed investment of the fund, the institution will automatically withhold the corresponding fund subscription funds on each fixed day. Investors only need to ensure that there are enough funds in the bank card, which saves time and energy to go to banks or other institutions.
Conventional investment
Every once in a while, investors may have some idle funds. The value-added (or value-preserved) investment through the fixed-investment fund investment plan can accumulate a lot of wealth unconsciously, which is a powerful support for the increasingly rapid economic development of China.
Regardless of the time point
The key to investment is "buy low and sell high", but few people make a profit by grasping the best trading point when investing. In order to avoid this artificial subjective judgment error, investors can invest in the market through the "fixed investment plan", regardless of the market entry time, market price and long-term investment decision on its short-term fluctuation.
average investment
The capital is invested in stages, with high and low input costs and relatively low long-term average, which maximizes the diversification of investment risks.
compound interest
The income of the "fixed investment plan" is the compound interest effect, and the interest generated by the principal is added to the principal to continue to derive income. Through the effect of rolling interest calculation, the compound interest effect is more obvious with the passage of time. It takes a long time for the compound interest effect of fixed investment to be fully displayed, and it is not appropriate to terminate it casually because of short-term market fluctuations.
As long as the long-term prospects are good, the short-term decline in the market is an opportunity to accumulate more cheap units. Once the market rebounds, long-term accumulated units can make a one-time profit.
The procedure is convenient and quick.
All major banks and securities companies have opened the fixed investment business of funds, and the entry threshold for fixed investment of funds is low.
Investors can conduct all transactions such as fund subscription and redemption online, realize the binding of fund account and bank fund account, and set subscription date, amount, term and fund code. Used for regular fixed investment of the fund.
At the same time, online banking also has many functions, such as fund account inquiry, fund account balance inquiry, net value inquiry, and changing dividend distribution method, so investors can easily complete their investment.