When you go to college, you should pay special attention to risks when buying funds. It is suggested to choose "Changxin Bond Fund" instead of charging subscription and redemption fees.
The following is an article I wrote for your reference:
Take a comprehensive view of the fund's regular fixed investment
At present, almost all fund companies have started regular fixed investment business. Industry, construction, agriculture, China, Bank of Communications, Shanghai Pudong Development Bank, China CITIC Bank, China Everbright Bank and China Guangfa Bank all have fixed investment, but the fund companies and types of fixed investment are different. After a long period of repeated publicity, the fixed investment has been recognized and accepted by most people. Here is a brief review of all aspects related to the fixed investment of the fund, hoping to help investors.
1. What is a fixed investment?
Fixed investment refers to investing fixed funds in the same designated open-end fund on a fixed date (such as the 8th of each month).
The investment cycle can be once a week, once a month/kloc-0, or twice a month. The starting point of each investment amount stipulated by each fund company is slightly different, the lowest is 100 yuan, mostly in 200 yuan, and it is accumulated by integral multiples of 100 yuan, and there is generally no upper limit. As an innovation of fixed investment, a number of fund companies and Industrial and Commercial Bank of China jointly launched "Jizhi Fixed Investment", which implemented "fixed time and no quota". According to the fluctuation of the stock market on the day before the designated subscription date, the system automatically adjusts the investment amount within a certain range; If it goes up, it will go down, and if it goes down, it will go up, which embodies the principle of "buy low". Investors can apply for fixed investment at the correspondent bank counter after selecting the fund type, or sign a fixed investment agreement on the websites of online banking and fund companies to stipulate the deduction period, amount and fixed investment period. On the agreed date, the bank card will automatically deduct money. If the bank card balance is insufficient, resulting in unsuccessful deduction for two or three consecutive months (banks and fund companies have different regulations), the fixed investment will be automatically terminated.
Second, the characteristics of fixed investment
1. The key to the profit and loss of fund investment lies in the timing of buying (subscription) and selling (redemption) and the choice of fund types. Comparatively speaking, the choice of timing is more important than variety, and it is much more difficult. The net value of the fund rises and falls with the rise and fall of the stock market, so it is particularly important to analyze the stock market outlook. However, it is impossible for ordinary investors to have such professional knowledge and skills. They just decide the timing of entering and leaving the market according to the feelings and hearsay of the supervisor. They may buy at a high level and sell at a low level, making it difficult to obtain the expected returns. Fixed investment is a phased investment, and the investment cost is high or low, which is relatively low in the long run on average, playing the role of leveling costs and diversifying risks. Compared with single purchase, fixed investment is much less important for timing, and some even publicize that "fixed investment can not consider timing".
2. For the "moonlight family" and working families who stay behind after the living expenses are removed, the fixed investment is similar to the zero deposit and withdrawal, and has the function of "compulsory financial management". After a small amount of investment, over time, sand will accumulate into a tower, and a considerable amount of assets will be accumulated in a few years.
3. Many salesmen of financial planners, banks and fund companies unanimously declared that fixed investment is suitable for investors with low risk tolerance. This is obviously misleading! It should be said that stock investment is a high risk, and buying a fund is to entrust a fund company to invest in a stock portfolio, which is a low high risk; Fixed investment of the fund is a way to reduce high risk to medium risk, and it is by no means low risk.
Three. Duration and redemption of fixed investment
Some analysts told investors that the longer the fixed investment time, the higher the income, so we must persevere and never give up halfway. This is unrealistic propaganda. The stock market cannot grow steadily every year. If there is a big bear market in the deadline of fixed investment, or the market collapses in the process of fixed investment, the income will be greatly reduced or even huge losses will be generated. According to the calculation of the well-known domestic fund research institution-Good Buy Fund Research Center, if an investor started to invest in the "Huaan China 50" index fund in February 2002, the cumulative rate of return by the end of February 2007 was 144.83%, but by the end of February 2008, it had plummeted for one year. From the perspective of foreign markets, if February 28, 2009 is the deadline for fixed investment, the Standard & Poor's 500 Index will make a long-term fixed investment of 10, with a loss of 43%; The yield of fixed investment for 20 years is only 5%, which is far less than that of bank deposits. These conclusive data are enough to fully explain that "the longer the investment, the better" is purely misleading! Wang Qunhang, a senior analyst at Galaxy Securities, pointed out that "the long-term fixed investment of funds is relative, and there is no absolute rigid fixed investment of funds." He also pointed out that at present, almost all fund companies recommend to all investors, and all funds can make fixed investment at any occasion and at any time, which is debatable. This gives us profound enlightenment to avoid misleading.
The fixed investment period depends on market conditions. If the market outlook will enter the downward channel, the fixed investment that has been handled should avoid risks and be redeemed or converted in whole or in part to make the income safe or avoid expanding losses. For example, the original plan was to invest for five years. After three years of deduction, the stock market has reached the top of the stage. If you are about to turn into a bear market, you should resolutely redeem it, take profits and avoid loss of income. During the fixed investment period, the stock market reaches the expected index and the income reaches the expected target, so it is necessary to consider adjusting the strategy, redemption or conversion.
It should be noted that only the super-average cost can make a profit when redeeming. The profit and loss point of the fund's fixed investment is not the arithmetic average of the net value of each fixed investment, but should be estimated by dividing the total fixed investment by the total share actually purchased. Only when the net value of the redeemed fund exceeds this profit and loss point can it be profitable.
According to the regulations, even if all the fund shares of fixed investment are redeemed, the fixed investment agreement has not been terminated. As long as there is enough balance on the bank card, it will still be deducted regularly. And don't think that all redemptions are the cancellation of fixed investment!
4. Timing of fixed investment and selection of fund varieties
It is true that the timing of a fixed investment is far less important than a single purchase, but the timing of starting a fixed investment is still very particular. The ideal start-up time should be that the stock market is in a downward channel, but the market outlook is obviously optimistic and will soon "turn more". The stock market rises repeatedly but fluctuates greatly, which is most suitable for fixed investment.
What kind of fund should I choose for a fixed investment? First of all, it must be clear that not all funds are suitable for fixed investment. Generally speaking, there are at least two types of funds: active and stable. Whether in a bull market or a bear market, the performance is good, which can help investors get higher returns to the greatest extent. If it is difficult to choose, you may wish to invest in index funds.
5. Is the return of fixed investment higher than that of single purchase?
It must be clearly said: not necessarily!
After careful and rational analysis and thinking, we can draw such a conclusion: in the bull market, the income of fixed investment is lower than that of single purchase; In the bear market, the income from fixed investment is higher than that from single purchase; In a volatile market, investors' operating skills should generally be no less than a single purchase.