Both open-end funds and closed-end funds can make fixed investment, but relatively speaking, open-end funds are more suitable for fixed investment.
The core strategy of fund fixed investment is the change of fund net value. The greater the fluctuation of fund net value, the more obvious the advantages of fixed investment, and the more opportunities to obtain low-priced chips and improve the expected return on investment. Therefore, open-end funds with large fluctuations in unit net value such as stock funds and index funds are more suitable for fixed investment.
In addition, the fixed investment of the fund requires regular subscription of fund shares. Closed-end funds have a certain closed period and cannot be redeemed at will during the closed period. Investors need to buy fund shares through the secondary market, so closed-end fund investment is actually very inconvenient.
Although money funds and bond funds are also open-end funds, the fluctuation of unit net value is small, and there is little difference between fixed investment and one-time purchase, so they are not suitable for fixed investment funds.
In fact, closed-end funds and open-end funds have their own advantages. A closed-end fund has a fixed fund share during its duration and is not affected by fund redemption. Relatively speaking, closed-end funds are more suitable as medium and long-term investment tools and investors with weak risk tolerance. Open-end funds are highly liquid and greatly influenced by market fluctuations, so from the perspective of expected returns and liquidity, open-end funds are better.