"Compared with fixed investment, the one-time investment income may be high, but the risk is also great. Because it avoids the influence of investors' subjective judgment on the timing of entry, the risk of fixed investment is significantly lower than that of stock investment or single fund investment.
The fixed investment of the fund is similar to long-term savings, which can spread the investment cost evenly and reduce the overall risk. It has the function of automatically increasing the price and reducing the price on dips. No matter how the market price changes, it can always get a relatively low average cost. Therefore, regular fixed investment can smooth the peaks and valleys of the fund's net value and eliminate market fluctuations.
As long as the selected funds grow as a whole, investors will get relatively average returns without worrying about the timing of entering the market.
Extended data:
Choose a fixed investment fund to avoid falling into four major misunderstandings:
1, quick success. No matter how the external environment changes, we should always keep a clear head and a healthy mind, and completely abandon the psychology of quick success and instant benefit. It is manifested in the following three aspects: first, it lacks a comprehensive and scientific understanding of the fund, does not study the background and connotation of the fund, and relies entirely on personal feelings. When it rises, it is joyful, when it falls, it is sad, and the operation is full of randomness, which will definitely affect personal income;
Second, people follow suit, have no opinions, and are often manipulated by non-existent gossip. Without analysis and judgment, it is inevitable to become a victim of a fund; Third, they have no good psychological quality and broad mind. As long as the market fluctuates, they will be hot-headed, anxious and suffer losses immediately. They didn't shoot when they should have. When they shouldn't have taken it, they took it without hesitation and missed the opportunity.
2, blindly chasing the wind. Like those beginners, despite the drills and demonstrations on land, I choked a few times after entering the water. So is Ji Min. When he first bought the fund, he had the momentum that "newborn calves are not afraid of tigers". He ate it boldly and lashed out at Fang Qiu, which was very natural and unrestrained. When you experience the pain caused by the fluctuation of funds, you will become timid, look around and dare not cross the line.
Many people have also become dependent, following experts, chasing experts, and imitating the practice of "fools walking next door in the New Year". What people buy, when to buy, how much to buy, what price, follow the trend. When the fund you bought is locked up, you will be eager to ask the "experts" for advice, but people will ignore it;
Let me ask you a question: Do you operate or do I operate? I can only knock out my teeth and swallow them in my stomach. Therefore, blindly following the trend, lacking wisdom and rationality, will inevitably suffer.
3. Short-sighted. There are potential risks in the fixed investment of the fund, which are neither based on personal wishes nor unpredictable. Some people complain that funds are shrinking, but they forget the elements of risk prevention and ignore the influence of external reasons.
4. Avoid greed and impetuousness. Some citizens caught up with the bull market soon after entering the market. The Shanghai Composite Index has been climbing all the way, and the prices of several funds they bought are also changing with each passing day. If they can sell at the current price, they can earn 40 thousand yuan. Now they are like climbing a towering mountain, dismissing the low mountain, and their goals suddenly become grand.
Although the fund should be sold at the right time, because money is real money in the bag, it is stubbornly believed that the stock market bull market is strong. Unexpectedly, the stock market suddenly reversed, the index plummeted, the fund was firmly stuck, and the market value shrank by more than 30%, watching the cooked ducks fly away from their hands;
I regret it. When you calm down, learn from a painful experience and make a rational analysis, you will realize a truth: stock trading is just like being a man, you should not be too greedy, because there is no end to desire, and the result of excessive pursuit of high returns is bound to be counterproductive. Accepting at a good time is not an ideal choice.
Baidu Encyclopedia-Fund Fixed Investment
People's Network-Fund Fixed Investment to Avoid Falling into Four Misunderstandings