First of all, the procedure is simple.
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. [3]
Second, it saves 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.
Third, invest regularly.
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.
Fourth, regardless of time.
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.
Verb (abbreviation of verb) 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.
Sixth, the compound interest effect.
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.
Seven, convenient and quick procedures
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. For example, for the fixed investment business of ICBC, the fixed investment of funds can be carried out at the lowest 200 yuan every month; The minimum subscription amount for the fixed investment business of China Agricultural Bank is only 100 yuan per month. 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, changing dividend distribution method and so on, so investors can easily complete their investment.
Disadvantages of fixed fund investment:
First, the fund's fixed investment must also face market risks. The risk of fixed investment of stock funds mainly comes from the ups and downs of the stock market, and the risk of fixed investment of bond funds mainly comes from the fluctuation of the bond market. If there is a sharp decline in the stock market as in 2008, even if the fund decides to invest, it is inevitable that the market value of the account will drop sharply temporarily. For example, from June 5438+ 10, 2008, the Shanghai Stock Exchange Index was invested by fixed fund investment, during which the maximum loss of the account was -42.82%, and it was not until May 2009 that the account basically recovered its funds.
Second, the liquidity risk of investors. Historical data at home and abroad show that the longer the investment cycle, the less likely the loss is. If the fixed investment exceeds 10 years, the probability of loss is close to zero. However, if investors lack financial planning for the future, especially underestimate the future cash demand, once the cash flow is tight during the stock market downturn, they may be forced to interrupt the investment of the fund and suffer losses.
Third, the risk of investors' operational mistakes. The fixed investment of the fund is aimed at a long-term financial planning, which is a disciplinary investment, not a tool for short-term profit. In practice, many investors who decide to invest in funds do not invest in accordance with the set discipline, but also chase up and down when they decide to invest in funds, especially when the stock market falls, they stop deducting investment, which violates the basic principle of fixed investment of funds and leads to the failure to play the role of fixed investment of funds. For example, in 2008, due to the large losses in the stock market, many fund investors suspended the deduction of fixed investment, which led to the loss of the opportunity to overweight at a low level, and the effect of fixed investment naturally could not be revealed.
Fourth, equate the fixed investment of the fund with the risk of bank savings. Fixed fund investment is different from regular deposit and withdrawal, which can not avoid the inherent risks of fund investment and ensure the absolute safety of investors' principal and income. It is not an equivalent financial management method to replace savings. If the investor's financial management goal is short-term, it is not appropriate to choose the fixed investment of the fund, but to choose a safer principal method such as bank savings.