In order to know the answer to this question, we use data to calculate.
There are two funds of the same type, Fund A and Fund B, and the net value of the two funds has also increased from 1 yuan to 1.5 yuan.
The trend of fund A is relatively stable, while the trend of fund B fluctuates greatly. The standard deviation of fund A's income is about 35%, and the fluctuation difference of fund B's income is about 72%. The standard deviation of return is used to measure the deviation of fund return. The higher the value, the greater the volatility of the fund.
When the net value is 1 yuan, we start to make fixed investment in two funds, with a fixed investment of 1 ,000 yuan every month. The fixed investment is as shown in the figure:
After four rounds of fixed investment, it can be seen from the data results that the return rate of fund A is 15.5%, which is lower than that of fund B, and the standard deviation of the return rate of fund A is half that of fund B, that is, the volatility of fund B is twice that of fund A. Therefore, it can be explained that the return rate of fixed investment of funds with higher fund volatility is higher.
Because of the high volatility of fund B, it buys more shares when the net share value is low. As can be seen from the chart, the total share of fund B is higher than that of fund A, and the extra rate of return comes from this extra share.
It should be noted that the above data model was established under the condition of high quality and good performance of fixed investment funds. If a fund has poor performance, it rises less than others when the market is good and falls more than others when the market is bad, then such a fund will not make money.
The fund's volatility is a factor that affects the fund's fixed investment income, but it is not particularly important. It is a trick in the process of fixed investment. When there are the same funds to choose from, we can choose the fund with higher volatility instead of deliberately looking for the fund with higher volatility to make a fixed investment.
The most important thing for a fund to make a fixed investment is long-term persistence, discipline and patience, which are the core elements. Volatile funds test investors' mentality. If the net value of the fund falls sharply, it will also be a certain challenge to investors' risk tolerance.
Sticking to investment discipline, keeping a good attitude and waiting for the rose of time with enough patience are the keys to the success of fixed investment.