Principle of fixed investment of fund

1, do what you can. Fixed investment must be done easily and without burden. A customer once decided to deduct 50,000 yuan every month to diversify the investment target, but after a while, he had to take out the time deposit to continue investing.

2. Set financial goals. You can deduct 3000 or 5000 regularly every month. When the net worth is high, you can buy less stocks, and when the net worth is low, you can buy more stocks, which can spread the entry time. This "average cost method" is most suitable for raising retirement funds or children's education funds.

3. Choose a market with an upward trend. An oversold market with good fundamentals is most suitable for starting regular fixed investment. Even if the current market is at a low level, as long as you are optimistic about the long-term development in the future, you can consider starting to invest.

Extended data

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Compared with fixed investment, one-time investment may have high returns, but it is also risky. Because it avoids the influence of investors' subjective judgment on the timing of entry, the risk of fixed investment is significantly lower than that of stock investment or single fund investment.

The fixed investment of the fund is similar to long-term savings, which can spread the investment cost evenly and reduce the overall risk.

It has the function of automatically increasing the price and reducing the price on dips. No matter how the market price changes, it can always get a relatively low average cost. Therefore, regular fixed investment can smooth the peaks and valleys of the fund's net value and eliminate market fluctuations.

As long as the selected funds grow as a whole, investors will get relatively average returns without worrying about the timing of entering the market.

Baidu Encyclopedia-Fund Fixed Investment