Fund fixed investment is called "the investment method loved by smart people", so what is the advantage of fund fixed investment compared to one-time investment at maturity?

Today I will talk about this topic.

Why make a fixed investment?

Because timing is the hardest thing in investing.

We are not Buffett, nor are we professional fund managers, nor are we various institutions that have financial advantages and information advantages. Therefore, we invest by choosing the right time, entering and exiting in the short term. The final result is to buy high and sell low, and we are cut off.

Chinese chives.

Fixed investment does not have high requirements for timing. Take the Shanghai Composite Index as an example. You don’t know whether 2,600 points is the lowest point, but compared to the 5,000 points and 6,000 points in the bull market, 2,600 points is definitely a relatively low area.

We only need to choose a relatively low and broad area to start fixed investment.

If the market outlook is good, fixed investment will not make as much as one-time investment, but everyone will be happy after all; if the market goes bad, fixed investment can continue to reduce the purchase cost. In the end, it will definitely be easier to get back the capital than one-time investment, and the profit will be higher than that of one-time investment.

A large one-time investment.

As we all know, short-term fluctuations in the stock market are difficult to predict. If you make a one-time investment, you will be under great psychological pressure after making a wrong purchase. It is easy to make frequent operations. Since it is not easy to buy right, the more operations you make, the greater the possibility of making mistakes.

, which ultimately results in losses from buying high and selling low.

However, with fixed investment, as long as the long-term upward trend of the index remains unchanged, every decline is an opportunity to accumulate low-priced chips. For patient investors, they prefer that the stock price fall, so that they have time to make arrangements and sweep up more stocks.

Bargains will earn higher expected returns in the bull market in the future.