It is ok to buy index funds, but how to judge the band? If you can judge, you might as well buy stocks.
There is an example to illustrate the long-term profit model of the fund's fixed investment; A gentleman invested 1 1,000 yuan every month to buy an index fund and reinvested the dividends of the fund. From its establishment in March 2004 to June 30, 2007, the Fund had a total investment of 39,000 yuan, while the total assets at the end of the period reached 65,438+065,438+03,933 yuan, with an average annual rate of return of over 42%. If the fixed investment is started from June 5438+February 2003, the total investment will be 42,000 yuan by June 30, 2007, and the total assets at the end of the period will be nearly 6,543,800 yuan. Of course, this gentleman coincided with the bumper stock market year last year.
The reason for the fixed investment is not only optimistic about the economic development of China, but also that the stock market will fluctuate, that is, there will be high and low points. The cost of fixed investment is the long-term investment cost during this period. Assuming that the stock market falls sharply and stays at the relative bottom for a long time, the average cost of fixed investment of the fund is slowly approaching the bottom position. As long as there is a rebound, there will always be times when the average cost is exceeded. When the time comes, the fixed investment will definitely be earned. The return of fixed investment is not when you invest, but when you redeem and how many points you redeem. This is lazy investment.