In the choice of personal investment, many people will choose the stable financial management method of fixed investment of funds. So is there compound interest on the fund's fixed investment? The expected annual income of the fund is calculated according to the net value, so the compound interest we are talking about is only an ideal assumption.
The relationship between fund and compound interest should be interpreted from the way of fund dividend. There are two ways to pay dividends to the fund. One of our common ways is to pay dividends in cash, that is, to distribute dividends to holders in cash. The second is the reinvestment of fund dividends. On the day of dividends, fund holders can choose to use dividends to buy funds again according to the net value of the day. There is no handling fee for this part of dividend purchase, which is compound interest under the understanding of many people.
We can understand the compound interest effect of the fund in this way. If 500 yuan participates in the fixed investment of the fund every month, it is exaggerated to say that continuous investment for 30 years is 360 months. According to the fixed investment formula of the fund, when the expected annualized income is 15%, after 30 years, the expected annualized income can be 3.46 million yuan. If our money is not used for fixed investment, but in the bank, then according to the one-year regular expected annualized rate of return of 3.87%, we can realize the expected annualized income of 339,000 yuan after maturity. In the case of continuing to invest all the funds at each maturity, the fixed investment of the fund is ten times different from the annualized rate of return expected by the bank on a regular basis. The main reasons for the huge gap are the difference between the expected annualized rate of return of the fund 15% and the bank's regular annualized rate of return of 3.87%, and the expected annualized rate of return 1 1. 13% and the continuous compound interest effect.
Although the expected annual rate of return of the fund's fixed investment 15% looks very impressive, investors must choose more suitable investment targets in order to maximize the ideal return on investment income. In the choice of fund types, the most suitable funds for fixed investment are generally stock funds or adaptive funds, but from the perspective of income, the fluctuation and risk of stock funds are relatively large, and the cost sharing of fixed investment funds can better reflect the advantages.
Time is the best friend of financial management. Although the annualized income of the fund's fixed investment is greater because of the compound interest effect, it is most taboo to change hands frequently on the way to maximize the annualized rate of return. If you have long-term financial goals, it is undoubtedly the best way to hold high-quality funds for a long time.