What skills do we have in the choice of fixed investment of funds, and what risks will these skills have? The following small series will give you an analysis first, and master the following three skills to reduce transaction costs and improve investment income:

First of all, let's look at the concept of fixed investment of funds.

Fixed investment is the abbreviation of fixed-term investment fund, which refers to investing in a designated open-end fund at a fixed time and amount, similar to the bank's zero deposit and withdrawal method. People usually refer to funds mainly as securities investment funds. There are three main analysis methods of securities investment: basic analysis, technical analysis and evolution analysis, in which the basic analysis is mainly applied to the selection of investment objects, while the technical analysis and evolution analysis are mainly applied to the temporal and spatial judgment of specific investment operations as an important supplement to improve the effectiveness and reliability of investment analysis. The fund's fixed investment is known as lazy financial management, and its value stems from a saying circulating on Wall Street: "It is more difficult to step into the market accurately than to catch a flying knife in the air."

First, make a reasonable allocation according to the term, type and risk of the fund. Fund products have their own characteristics and advantages, such as stock funds, bond funds and index funds. Investors can choose according to their risk tolerance.

Second, choose redemption and conversion reasonably. When the fund invested by investors reaches the investment target or performs poorly, we don't have to redeem it to end the investment, but we can also convert it into other better fund investments. Most banks have a variety of products for investors to choose and convert. For example, ICBC has more than 100 fixed investment products, while BOC has dozens of fixed investment products. Reasonable selection of redemption and conversion can save a lot of money.

Third, adopt appropriate charging methods and investment ratio. If investors want to choose a long-term and stable investment mode, they can adopt the "back-end charging" mode, which is characterized by the lower rate for the longer they hold it, which is conducive to compound interest and appreciation. According to the income level of investors, reasonable arrangement of investment proportion according to investment, financial management and living expenses will not affect the living standard, but also achieve the purpose of asset appreciation.

In addition to the above three points, there are many things that need attention in our daily investment, such as grasping the opportunity to enter the market and learning more about investment and financial management. As long as we are careful enough, we can certainly do better in financial management.

Extended reading fund fixed investment risk

Fixed investment of funds is a simple and easy way to guide investors to make long-term investments and average investment costs. However, the fixed investment of the fund can not avoid the inherent risks of fund investment, can not guarantee investors to obtain income, and is not an equivalent financial management method to replace savings. Because the fixed investment of the fund itself is a fund investment method, it is impossible to avoid various risks that may be faced in the process of investment operation.

First of all, 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.

Secondly, 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.

Once again, it is 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.

The fourth is to 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.

To sum up, compared with one-time investment, the fund does not need to choose the buying opportunity, which reduces the investment difficulty of the fund and is beneficial to ordinary small and medium investors. However, in the specific fund investment operation process, investors need to fully understand and grasp the risks of fixed investment, so as to avoid the risks in fund investment and avoid unnecessary losses.