The benefits and advantages of the fund's fixed investment mainly include:
1, average cost, risk diversification. It is difficult for ordinary investors to grasp the right investment opportunity in time, and they often buy at the high point of the market and sell at the low point of the market. However, the fixed investment mode of the fund is adopted. No matter how the market fluctuates, the fixed investment fund will be fixed for one day every month, and the bank will automatically deduct the money, and automatically calculate the number of fund shares that can be purchased according to the net value of the fund. In this way, investors buy funds on schedule, and the investment cost is relatively average.
2. Suitable for long-term investment. Because the regular quota comes into the market in batches, when the stock market is consolidating or falling, because the regular quota is undertaken in batches, you can buy more and cheaper, and the return on investment after the stock market rebounds is better than that of a single investment. For the China stock market, it should be a volatile upward trend in the long run, so regular quota is very suitable for long-term investment and financial planning.
3. It is more suitable for investing in emerging markets and small equity funds. For emerging markets or small stock-based overseas funds with large fluctuations in medium and long-term fixed investment performance, because the stock market callback time is generally long and the speed is slow, but the rising stock market rises rapidly, investors can often accumulate more fund shares when the stock market falls, thus obtaining a better return on investment when the stock market rebounds.
4, automatic deduction, simple procedures. 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. Therefore, the fixed investment fund is also called "lazy financial management", which fully embodies its convenient characteristics.
5, save time and effort. Set a fixed investment time and cycle, ignore the market ups and downs, do not need to brush the valuation every day, and entangle which day's valuation is the lowest point. However, the director reminded that we should try our best to find a stable fund with good expected returns.
6. Allocate the net purchase value equally. A one-time fixed investment may be bought at a high point, and it is necessary to make up the position, which will inevitably increase the position. However, the net value of each purchase of fixed investment is different, high and low. Even if you buy at a high point, you can form a smile curve by sticking to a fixed investment.
7. The compound interest effect is considerable for a long time. The expected 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 the expected income. With the passage of time, the compound interest effect becomes more obvious. 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.
I believe that everyone should be generally clear about the benefits and advantages of the fund's fixed investment now. I hope that everyone will keep their eyes open and invest carefully when choosing the fixed investment of the fund!