Fixed investment is bought in batches, and the net value of each fund is different. Therefore, the holding cost of fixed investment is also called "average cost". Cost of holding positions = total investment/total share, with total investment being the sum of each fixed investment, total share being the sum of each fixed investment share, and fixed investment share = fixed investment amount/net fund value.
For example, suppose that the net value of a fund is shown in the following table, with an initial investment of 1 1,000 yuan, a monthly investment of 1 1,000 yuan, and a fixed investment of 5 months, and the net value of the fund at the time of redemption is 1. 10 yuan.
Total investment =1000+100 * 5 =1500.
Total share =1000+117.65+142.86+125+11+90.
Average cost = total input/total share =1500/1587.52 = 0.945.
There are two ways to calculate the return on fixed investment:
Method 1: fixed investment yield = total income/total investment? = (market value-total investment)/total investment. In the above example, it is (1.10 *1587.52-1500)/1500 =16.4%;
This method does not need to consider the number and duration of fixed investment, but simply adds the invested capital as the principal and calculates the simple rate of return with the existing (market value-principal) as the income. This is the method we used above, which is suitable for the situation that we don't know the net value of the fund when buying and selling.
Method 2: Return on fixed investment = (net fund value-average cost)/average cost. In the above example, it is (1.10-0.945)/0.945 =16.4%.
When buying and selling funds, the yield = (selling price-buying price)/buying price. This is the yield of one-time buying strategy. Fixed investment is bought in batches, so the "buying price" should be "average cost" and the "selling price" should be "net fund value at the time of selling".
Extended data
Fixed investment of funds is a safe investment method, and its biggest advantages are average investment cost and avoiding timing risk. Its risk is relatively low, and it has the advantages of regular investment, sand accumulation, average cost and risk diversification. Therefore, whether it is a bear market or a bull market, the fixed investment of the fund is a more suitable financial management method for ordinary investors. Therefore, the fund must avoid three major misunderstandings when making a fixed investment:
Myth 1: Wait until the market is clear before entering the market. Many investors want to appear at the bottom, or when the market is clear, but in fact, the market is never clear. If you look at the past K-line chart, the market is always clear. In the market, when you understand, the opportunity has passed.
Myth 2: If you have already bought a fund, you don't need to make a fixed investment. The correct way: idle funds are divided into existing funds and monthly savings. The fixed investment of the fund is mainly aimed at saving and making your salary move.
Myth 3: The weak market stops the fund's fixed investment. Fixed investment of funds is an investment strategy based on alternating bull market and bear market. The same fund gets less share in the bull market and more share in the bear market, so as to finally realize cost sharing and obtain average income.
References:
China Economic Net-The fund has a good return from fixed investment.