The most important thing about the fixed investment of the fund is that it can strictly abide by the investment discipline and persist for a long time. In all kinds of investment suggestions, it is always mentioned that the period of a fixed investment of the fund should last at least 3 to 5 years. Why three to five years? This should also start with the cycle of the market.
Let's look at a set of data.
From 65438 to 0990, the trend of the Shanghai Composite Index can be roughly divided into several stages:
The first bull-bear cycle: 1990, 12, 1 to 1993, and the cycle lasts for more than 3 years;
The second bull-bear cycle: from February 1993 to May 1997, and the cycle lasts for more than 4 years;
The third bull-bear cycle: from May 1997 to June 2006, 5438+0, and the cycle lasts more than 4 years;
The fourth bull-bear cycle: from June 5438+0, 2006 to June 10, 2007, with a cycle duration of nearly 6 years;
The fifth bull-bear cycle: from June 2007 to August 2009, the cycle lasts for about 2 years;
The sixth bull-bear cycle: from August 2009 to June 2005, the cycle lasted for nearly 6 years;
The seventh bull-bear cycle: from June 20 15 to February 20 18, the cycle lasts for nearly 3 years.
Through the above data, we can soon find that the 28-year trend of the Shanghai Composite Index from 1990 to February 20 18 can be divided into seven bull-bear cycles, and the average duration of each bull-bear cycle is basically within the range of 3-5 years.
After understanding the cycle of the A-share market, we also need to know the smile curve that we must know when making a fixed investment.
The principle of the smile curve is that when the market starts to fall, we can spread the cost in the process of falling by sticking to the constant fixed investment and wait for the market to rebound by accumulating chips. When the market trend changes and the head turns upwards, it is time to start harvesting. Because the curve of this market trend is like an arc-shaped smile, it is called a smile curve.
To complete a complete smile curve and gain profits, we need to adhere to a complete bull market cycle.
Fixed investment is to continue to buy at a low level when the fund falls, thus diversifying costs. When the fund goes up, you can enjoy the benefits. If a good fund is sold just because it has fallen for half a month, then you lose the opportunity to buy the fund at a low level.
The fixed investment of the fund is to make money in the long term, not in the short term. The ideal state of the fund's fixed investment is a perfect smile curve.
Therefore, according to historical statistics, it is easier to complete the smile curve after 3-5 years of fixed investment, that is, the fixed investment can achieve the maximum effect.
However, on the other hand, since it is persistence, we should also make meaningful persistence. So, before the fixed investment begins, how about determining the fund you want to buy?
If the performance of the fund itself is not good, such as 1 and the performance of three years are ranked in the last quarter of the same kind, then there is no need for such a fund to continue to make fixed investment and stop loss as soon as possible.
If your fund has no problem, good long-term performance and can rank in the top four of its kind, you must stick to it.
Choosing high-quality funds and insisting on fixed investment have the best effect.
I hope the above contents are helpful to you.