When investing in funds, most investors like to buy when the fund is at a low price. Many investors believe that they can earn more income by buying when the fund is at a low price. So what are the benefits of buying funds at low prices? Let’s find out together.

Benefits of buying a fund at a low price

1. If a fund is bought at a low price, the cost of holding a position is relatively low, and the room for subsequent declines is relatively limited, which increases the risk of losses for investors. Much smaller.

2. If the fund is bought at a low point, the fund still has relatively large room for growth and is more likely to make a profit.

Funds usually rise until they reach a high point and then fall back. Buying at a low point is equivalent to buying cheaply. After experiencing a low point, when it rises to a high point, the income will be very large. High, on the contrary, if you buy at a high point, the fund will fall back to a low point in the future, and you will lose a lot.

How to judge whether the fund is at a low point?

1. The trend of the underlying object

The trend of the fund is affected by the trend of the underlying object, that is, when the underlying object rises When the underlying asset falls, the fund will follow. Therefore, investors can judge the low point of the fund based on the low point of the underlying asset.

2. The historical trend of the fund's net value

Investors can choose the low point of the fund based on the historical trend of the fund's net value, that is, when the fund's net value falls, it is supported by a certain historical low. , when there is a rebound trend, it means that this point is the fund's recent low, and investors can consider buying some at this time.

3. Valuation

Investors can also choose the low position of the fund based on the fund’s valuation. Generally speaking, when the fund valuation is higher, the fund is more bubble-like. If the fund is large, it is at a high level in the market. When the fund valuation is low, the fund may be at a historical low.

The above is an analysis of the benefits of buying funds at low points. I hope it can be helpful.