Among the many investment methods of funds, fixed investment is almost universally recognized as a simple investment method with good returns.

So why is fixed investment recommended by everyone?

What specific advantages does it have?

Let’s find out together.

Why are fixed investment returns high?

1. Long-term investment, compound interest accumulation. Since fund fixed investment is generally a long-term investment, and it has the effect of compound interest, that is to say, the interest generated by the principal will be added to the principal, and then continue to derive income, generating interest rollover.

The effect of compound interest becomes more and more obvious as time goes by. In the later period, its income will almost increase dramatically.

2. Amortized costs, higher fault tolerance. Due to the stock portfolio constructed by the fund, we cannot accurately sell at the highest point, and when it falls, we cannot accurately buy the lowest point.

Fund fixed investment is mainly to buy as many fund shares as possible when the market is at a low point, and then use this to spread the purchase cost. Then when the fund rebounds to its original position, it will have already received benefits.

If we continue to rebound and rise, our profits will also increase.

However, there are two main problems with fixed investment. One is that we must learn to choose high-quality funds, otherwise the more fixed investments we make, the more losses we will suffer.

The second is that everyone has learned how to invest, but there are still many investors who have not learned to take profits. For many investors who have experienced a sudden correction during the bull market, taking profits is a major factor they learned in this market.

lesson.