Since the beginning of this year, the fluctuation of the fund has caused many investors to suffer greatly. Today, we share it with you through the famous "smile curve" theory. Bian Xiao is here to sort out why it is difficult to persuade you not to terminate the fixed investment for your reference. I hope everyone will gain something in the reading process!

What is a smile curve?

The "smile curve" is named because the shape of the curve is very similar to a smile. The curve on the left in the figure shows that in the volatile market, with the change of time, the market fell and the net value of the fund fell. At this time, if you insist on fixed investment, you can accumulate shares at a low level and reduce the overall average cost. The curve on the right shows that when the market performs well, the role of accumulating shares in the early stage is gradually reflected, and investors can share the benefits and achieve their goals.

Compared with one-time large purchase, long-term fixed investment can average the investment cost and wait for the emergence of market conditions, thus realizing the "smile curve".

How to realize the smile curve?

After understanding the basic theory of smile curve, we need to think about how to realize the benefits through smile curve.

1. Smile curve takes time to see the effect, that is, it must be adhered to for a long time. Fixed investment helps investors weaken the timing problem, which needs long-term persistence and waits for market opportunities. Looking back at the historical market performance, we can find that A shares are more characterized by high volatility and short bulls and long bears. The more difficult it is, the more time it takes to test the investment strength, which just gives more room for the fixed investment strategy.

2. Don't stop the fixed investment at the low position. Buying at a low level can effectively reduce the cost of holding positions and reduce the overall risk. Compared with one-time investment, fixed investment has the function of dispersing risks, so there is no need to pay too much attention to the starting point of fixed investment. The longer the market fluctuates, the more cheap chips are collected, and the unit share cost of fixed investment is more average. Of course, everything has a major premise, and investors insist on low-level fixed investment.

Take the public offering fund as an example, for example:

Xiaonan set a monthly deduction of 1 1,000 yuan. During the first three months of fixed investment, the market pulled back, and the net value of the fund after three deductions was 1.5, 1 and 0.5 respectively.

At this time, guess how much his net worth needs to rise before he can return to his capital.

Do many friends think it is 1?

If the net value returns to the average 1 yuan, then Xiaonan's account will have a profit of 22.22%; If we return to the high point 1.5 yuan, the investment income will be as high as 83.33%! !

That is to say, in the market callback stage, more chips are accumulated at a low level through fixed investment. When the market picks up, there will be more opportunities to improve the overall income, which also explains why "we must insist on fixed investment when the market fluctuates". In contrast, it takes longer to stop the fixed investment.

So we want to tell you: how hard it is now, how bright the future will be.

The "February 28th effect" can also be traced in the capital market. 80% of the fund's investment income may come from 20% of the time. The fluctuation of the market is normal, so it is particularly important to learn scientific mentality and investment skills. It is normal to adjust downward during the spiral process, and so is the fixed investment.

In the market callback stage, don't give up the fixed investment because you can't see the income or the income is negative, otherwise when the bull market really returns, we can only miss the rebound opportunity. Small partners who choose to invest in Sina may face certain fluctuations in the process of market fluctuation. They might as well learn the concept of fixed investment, insist on fixed investment and wait for good news!

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

Tip:

1. Pay attention to the proportion of fund types according to your risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

3. Pay attention to the later maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

4. Pay attention to buying funds and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

5. Be careful not to "love the new and hate the old" and blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

6. Be careful not to buy bonus funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

7. Be careful not to talk about heroes with short-term ups and downs. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

8. Pay attention to flexible investment strategies such as steady and worry-free fixed investment, affordable and simple dividend conversion.

Fixed investment related articles:

★ Introduction to the Operation Guide for Fixed Investment of Funds

★ Introduction of Index Fund's Fixed Investment

★ Introduction to Xiaobai Fund

★ Introduction to personal investment and financial management

I want a big chance.

★ Is it better to buy a new fund or an old fund?

★202 1 What are the skills of the fund's fixed investment?

★ Do you want to change your performance if you buy a fund?

★ Personal investment and financial management tips

★ How about the wealth management fund of China Construction Bank?