Fixed investment is the abbreviation of fixed-term investment fund, which refers to investing a fixed amount in a designated open-end fund at a fixed time, similar to the bank's zero deposit and withdrawal method. There are two ways to invest in the fund, namely, single investment and regular fixed investment.
Advantages of fixed fund investment:
1, simple program
For fixed investment funds, investors only need to go through the one-time formalities at the fund agency, and then they will automatically deduct the subscription for each period, usually on a monthly basis, but there are also other time limits such as half a month and the first quarter as regular units.
2, save time and effort
After handling the fixed investment of the fund, the institution will automatically withhold the corresponding fund subscription funds on each fixed day. Investors only need to ensure that there are enough funds in the bank card, which saves time and energy to go to banks or other institutions.
3. Conventional investment
Investors may have some idle funds every once in a while, and the investment appreciation through the fixed-term fund investment plan can be accumulated.
4. Don't consider time.
The key to investment is "buy low and sell high", but few people make a profit by grasping the best trading point when investing. In order to avoid this artificial subjective judgment error, investors can invest in the market through the "fixed investment plan", regardless of the influence of entry time, market price and long-term investment decision on their short-term fluctuations.
5. Average investment
The capital is invested in stages, with high and low input costs and relatively low long-term average, which maximizes the diversification of investment risks.
6. Compound interest effect
The income of the "fixed investment plan" is the compound interest effect, and the interest generated by the principal is added to the principal to continue to derive income. Through the effect of rolling interest calculation, the compound interest effect is more obvious with the passage of time. It takes a long time for the compound interest effect of fixed investment to be fully displayed, and it is not appropriate to terminate it casually because of short-term market fluctuations. As long as the long-term prospects are good, the short-term decline in the market is an opportunity to accumulate more cheap units. Once the market rebounds, long-term accumulated units can make a one-time profit.