The investment object of regular fixed investment of funds is open-end funds, which has investment risks; There is basically no principal risk in bank time deposits.

2. Benefits

The interest rate of bank time deposit is fixed in advance, but the income of the fund is uncertain.

Step 3 withdraw money

Withdrawal of time deposits before maturity will cause certain interest losses, while fixed fund investment can be redeemed at any trading time when the fund is open for redemption.

4. Speed

Buying fund products will produce fund subscription rate and fund management fee rate; Time deposits do not generate any handling fees.

Extended data:

I. Time deposit method:

The deposit methods of fixed deposit include lump-sum deposit and withdrawal, lump-sum deposit and withdrawal, principal deposit and withdrawal and lump-sum deposit and withdrawal.

1, lump-sum deposit and withdrawal

It is a time deposit in which customers choose the deposit term, lump-sum deposit and withdrawal, and withdraw the principal and interest at maturity.

2. lump sum deposit and withdrawal

If customers need to gradually accumulate the monthly balance, they can choose the deposit method of "zero deposit and lump sum withdrawal". Lump sum deposit and withdrawal refers to the fixed deposit with an agreed amount, which is deposited monthly according to the agreed amount and the principal and interest are withdrawn at maturity.

3. Deposit principal and interest.

If a customer has money that he doesn't need to use within a certain period of time, he only needs to withdraw interest regularly for daily expenses, and the customer can choose the method of "saving principal and withdrawing interest" as his regular savings deposit. "Deposit with interest" is a kind of time deposit, in which the principal is deposited in one lump sum, the interest is withdrawn in installments, and the principal is withdrawn at maturity.

4. lump sum deposit and withdrawal

If a customer has a large monetary income and needs to withdraw it in installments within a certain period of time, he can choose the "lump sum deposit and withdrawal" method as his own savings deposit method. The "lump sum deposit and withdrawal" business is a fixed deposit with a pre-agreed term, lump sum deposit and withdrawal, withdrawal of principal by installments and withdrawal of interest at maturity.

The second is the fixed investment of index funds.

The biggest advantage of fixed investment is that it can average the investment cost, because the way of fixed investment is to buy a fixed amount of funds regularly no matter how the market fluctuates. When the net value of the fund rises, the number of stocks bought is small; When the net value of the fund goes down, buy more shares, that is, automatically form an investment method of lightening positions on rallies and overweight on dips.

Index fund is the first choice for fixed investment, because it is less interfered by human factors and only passively tracks the index. In the case of long-term economic growth in China, long-term fixed investment is bound to get better returns.

Active funds are greatly influenced by fund managers. At present, the performance of active funds in China is not ideal in terms of sustainability. Often the champion of the previous year is poor in the second year, and changing fund managers may also cause performance fluctuations. Therefore, if you hold it for a long time, it is better to choose an index fund. If there is a rebound, index funds should be the first choice.

Foreign experience shows that in the long run, index funds outperform most active equity funds and are one of the first choices for long-term investment. According to American market statistics, since 1978, the average performance of index funds has exceeded 70% of active funds.

Three, the calculation method of fund management fee rate

The management fee is related to the fund size, generally speaking. The larger the fund scale, the lower the fund management fee rate. But at the same time, the fund management fee rate is also related to the fund category and different countries or regions.

Generally speaking, the higher the fund risk, the higher the fund management fee rate, among which the fund with the highest rate is the securities derivative fund, such as the annual rate of the warrant fund is 1.5% ~ 2.5%. The lowest is the money market fund with an annualized rate of only 0.5% ~ 1%.

The annual management fees of other funds announced by Hong Kong Fund Association are: 0.5% ~ 1.5% for bond funds and 1% ~ 2% for stock funds.

In developed countries and regions such as the United States, the annual management fee of the fund is usually around 1%. However, in some developing countries or regions, the proportion is higher. For example, the annual fund management fee rate in Taiwan Province Province is generally 1.5%, and the annual fund management fee rate in some developing countries even exceeds 3%. China's current annual fund management fee is 2.5%.

Baidu encyclopedia-time deposit

Baidu Encyclopedia-Index Fund Fixed Investment

Baidu Encyclopedia-Fund Management Fee Rate