Because when the market is low, buying a "fund with big fluctuations" is much larger than buying a "fund with small fluctuations". If the market rises in the future, then "volatile funds" will definitely get the highest returns.
In order to intuitively explain that "fluctuation funds" get higher returns, we use data to speak.
Fund A: The net value from June to May was 1 yuan, 0.9 yuan, 1 yuan, 1. 1 yuan, 1 yuan respectively;
Fund B: The net value from June to May was 1 yuan, 0.6 yuan, 1 yuan, 1.4 yuan, 1 yuan respectively;
As can be seen from the above figure, the fluctuation of fund B is obviously greater than that of fund A..
Seeing this, some prudent investors may choose Fund A for fixed investment. Because they think that although fund A and fund B are the same in terms of final net worth, the fluctuation of fund B is too great to bear.
But what I want to say is that the income of fixed investment fund B is greater than that of fixed investment fund A, so read on.
Look at fund a first:
As can be seen from the above figure, after five months of fixed investment, the total subscription share is 5050.20 shares. According to the net value of fund A in May 1 yuan, the total market value of the account of fixed investment fund A is 5020.2 yuan, so its cumulative rate of return is 0.4%.
Look at fund b again:
As can be seen from the above figure, after five months of fixed investment, the total subscription share is 5,380.95 shares. According to the net value of fund B in May 1 yuan, the total market value of the account of fixed investment fund A is 5380.95 yuan, so its cumulative rate of return is 7.62%.
Obviously, the income of fixed investment fund B is 7.62% higher than the 0.4% of fixed investment fund A. ?
The question is, why is the return of fixed investment fund B higher?
The reason is not difficult to understand. When the market fell, the share that Fund B finally bought was 5380.95, which was much larger than that of Fund A's 5020.2. Therefore, when the net value of the two funds returns to the same starting line, buying more funds will definitely increase greatly.
Therefore, it is best to invest in funds with large fluctuations.
Is this the case? As long as it is a fund with high volatility, it is suitable for fixed investment.
Certainly not! Because some funds fluctuate greatly, but they just can't rise. If the fixed investment is such a fund, then it must be getting deeper and deeper.
For example, Standard & Poor's Hong Kong Growth Enterprise Market (SPHKG).
As can be seen from the above figure, the fluctuation of S&P Growth Enterprise Market (SPHKG) is not small, but the index points have repeatedly hit new lows.
If you had invested in such an index or fund, let alone made money. I'm afraid no matter what investment strategy you adopt, you won't get your capital back now.
Therefore, it is best for a fixed investment fund to meet the following two points:
1. It fluctuates greatly. Under the same conditions, when the market falls, the fund with large fluctuations will get more fund shares, and if the market rebounds in the future, the increase will be the biggest;
2. The texture is good. Only funds with good quality can rise back or rise more in the future.
Ok, that's all for today's article. I hope it helps you.
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