Generally speaking, investors' investment funds usually choose to make multiple fixed investments to level the investment cost and improve the profit probability. If investors decide to invest when they want to fall, reduce the cost of holding funds and wait for the market to reverse and take profits, they will make a profit. In this whole process, the net value of the fund first fell and then rose, and a curve similar to "smile" appeared, which is the principle of the smile curve of the fund's fixed investment.

In the smile curve, even if users buy at a high level, the average cost will be reduced after market decline and long-term bottom investment.

The fixed investment of smile curve fund is the above process. For example, A shares 20 18 have been falling all the way. If the fixed investment is started at the beginning of 20 18, the amount of funds is relatively small at the beginning and the losses suffered are relatively small. With the constant investment of investors, the principal is increasing, the buying point is decreasing, and the investment cost is also decreasing.

Then, according to the principle of smile curve, A shares soared at the beginning of 20 19. Because of the fixed investment of 20 18, not only the subscription cost is decreasing, but also the accumulated fund share is more. In this case, at the beginning of 20 18, the expected return of fixed investment is definitely better than one-time investment.

The advantage of fixed investment is to dilute the cost and smooth the risk, and more chips can be collected in the subsequent fixed investment. Once the market rises rapidly, the income will be very rich.

According to the principle of smile curve in the fixed investment of funds, investors have the following principles when investing in funds:

1, insist on investment

As soon as many investors see the market falling and lose money, they suspend or terminate their fixed investment, which leads to the interruption of the smile curve and the final loss.

2. Maintain the continuity and stability of capital investment.

Whether the market is in the process of rising or falling, we must maintain the stability of capital investment. Under normal circumstances, the original deduction should be maintained as much as possible. Of course, the best situation is to increase the amount of deduction or the number of investments when falling, and appropriately reduce the amount of investment or the number of deductions when rising.

3. Adhere to investment logic and discipline.

It is not advisable to be too optimistic or too pessimistic, and it is most important to maintain a normal mind. Market fluctuation is a normal phenomenon. What investors need to do is to believe in their own investment logic and abide by investment discipline. Persistence often means victory.