In addition to the fixed investment of index funds, there are other types of funds, but no index funds are suitable. There are mainly the following reasons:
1, the index fund passively simulates the index, without additional analysis by the fund manager, and the management cost is lower. The basis of profit from fixed investment is to enjoy the systematic profit of the stock market, not to make profits at the right time. Investing in index funds can achieve the goal of systematic profit, and the subscription fee and management fee of index funds are lower than those of active funds.
2. Active management funds are greatly influenced by the personal factors of fund managers, who are a highly mobile profession. Every time a fund manager changes, even if the investment level has not dropped, it is always necessary to switch positions and exchange shares according to the preferences of the new manager, increasing unnecessary losses. Once the index selection criteria of constituent stocks are determined, they rarely change.
3. A stock or an industry may fall for a long time. But the index won't. According to the changes in the market, the index will bring out the stocks that have been deserted and abandoned by the market, bring in active and representative fresh blood, and maintain this metabolism.
Generally speaking, the fixed investment of index funds can always earn much more than most funds in the market. If you are confident to choose the best 20% or 30% actively managed funds in the market, you can take the time to make a choice. If not, you can choose the Shanghai and Shenzhen 300 Index ETF Linked Fund for fixed investment, and you can also achieve good results.
In addition to the above characteristics, there are three options for index funds to vote.
1, using the composite index index fund has a higher success rate and higher income.
2. Both the GEM index and the market value index can be fixed, and they can make money in the long run. People with different risk preferences can choose according to their own preferences, and there is no absolute good or bad.
3. Differentiated index fund portfolio is better than single index fund.
The fixed investment of the fund is only a financial management behavior, not a fortune-making behavior, so only long-term accumulation (at least five years) can see the effect, and impatient people will not enjoy the results of the fixed investment of the fund. Therefore, we must be prepared to use the fund to make a fixed investment.