Can fund investment definitely make money?
Not necessarily. The fixed investment of the fund is just a way of buying, and whether it can make money depends on the market situation, the trading system of investors and the decision-making of investors. By investing a certain amount of money every once in a while, the fund can use time to smooth the impact of short-term judgment errors, so that the cost of holding positions is as average as possible and the volatility is reduced. In the case of long-term holding, fixed investment is a more stable investment method than one-time buying.
How to understand the fixed investment of the fund?
The reason why many investors admire the fund's fixed investment is that the fund's fixed investment can earn share when the market falls and gain income when the market rises. The fixed investment of the fund is fixed on a regular basis, so in the process of market decline, the net value of the fund also falls, and investors can buy more fund shares with the same money. As investors insist on fixed investment for a long time, the holding cost of each fund is declining. When the market rises, the funds held by investors become more and more valuable. Even if the capital does not rise to the previous high point, the overall position can still reach a profitable state, because investors hold a large number of "cheap" fund shares.
Generally speaking, the fixed investment of the fund is relatively simple and easy, and it also has a good compound interest effect. But the investment method can't change the performance of the fund, because investors can't accurately judge the market situation. If investors participate in the fixed investment when the fund rises, the fixed investment will not only reduce the subscription cost, but will increase the subscription cost with each subscription. When the market falls, the shares in hand are even less valuable. If the fixed investment is terminated at this time, it will cause losses. If the fixed investment is continued, it may also cause more serious losses in the short term.
To sum up, investors must not blindly make fixed investment in funds, or choose high-quality funds, and then consider entering the market after rationally judging market conditions. Moreover, we should also treat the fixed investment dialectically.