With the continuous expansion of the fund market, more and more people begin to invest in funds, and in the process of investing in funds, many investors have seen the option of "fixed investment". The following is a collection of Bian Xiao's opinions on how to buy suitable index funds for 202 1 fixed investment funds. I hope I can help you.
How to buy a fixed investment fund?
1 If you want to make a fixed investment in the fund, you must work hard from two aspects: selecting the fund and setting the fixed investment cycle.
2 Choose the right fund: index funds and equity funds are more suitable for fixed investment, but also pay attention to fund performance, fund manager, fund scale (the bigger the better), establishment period (the longer the better) and fund company strength.
3 Choose the right cycle: if the market price at the beginning of fixed investment is just at the top of the stage, then a longer fixed investment interval is easier to dilute the cost; If the market price at the beginning of fixed investment is just at the bottom of the stage, it is easier to dilute the cost with a shorter fixed investment interval.
It should be noted that investors should not only consider the content of the fund, but also consider their own risk tolerance and the funds they can provide when making a fixed investment. In addition, the fixed investment also needs relative timing, and it is not foolish to start the fixed investment when the historical valuation bubble is obvious, such as 6000 points in 2007 and 5000 points in 20 15 years.
What are the advantages of index funds?
1 As a fund, we spread the risk of individual stocks by building a portfolio.
2. Low cost: the fund includes three aspects: management cost, transaction cost and sales cost. Because index funds use passive tracking, they don't need to exchange shares frequently, and the related expenses are lower than those of active management funds.
3. Closely track the index: With passive strategy to track the index, investors do not need to pay attention to who the fund manager is and what investment strategy the fund manager adopts.
In fact, among the types of index funds, there is another one that can be actively managed, and that is index-enhanced funds. The goal of index-enhanced funds is to gain market returns beyond the index while controlling risks, but in this way, the performance of index-enhanced funds may also be worse than the index.
What taboos should investment funds pay attention to?
1 Avoid short lines. The investment fund market is not a speculative market, and the fund focuses on long-term investment, rather than rushing to redeem it with a slight gain or a decline in net value. The net value of the fund will change with market fluctuations and should be able to withstand the interference of fluctuations. It is not appropriate to hope for short-term investment and make quick money in a month or two.
2. Avoid excessively diversified investments. Many investors believe in the principle of "not putting eggs in the same basket", so when buying funds, they like to buy multiple open-end funds from different fund companies. In terms of risk probability, diversified investment can indeed reduce many risks, but too diversified investment is not conducive to fund management. Generally speaking, you should choose a few funds that suit your investment style.
3 avoid watching dividends to buy funds. There is a big difference between fund investment and stocks. It is an easy misunderstanding to choose funds according to dividends. Stocks can't be redeemed, and stocks are just a kind of certificate that can represent certain rights, so the intrinsic value of stocks is mainly reflected in dividends. The stronger the dividend paying ability, the higher its intrinsic value. Funds can reflect their intrinsic value through redemption at maturity (closed-end funds also have maturity dates), and dividends of funds will directly lead to a decrease in the net value of funds, and dividends are paid to investors in advance. A fund that pays dividends regularly is not necessarily a fund with good performance. On the contrary, funds that don't pay dividends but whose net value grows rapidly should be our favorite objects.
4 avoid following the crowd. Most investors have herd mentality. For example, many people usually rush to buy newly issued funds to see what others invest and what they invest. In fact, fund investment should have its own opinions, which should be based on the fundamentals of fund management companies, investment income and judgment on the current market, rather than drifting with the tide.
The fund will also lose a lot, a huge loss; Fund managers are not completely careless. Moreover, the sudden thunder of listed companies cannot be known in advance or completely prevented. At this time, the market is selling vigorously, buying rarely, the price is falling every day, and the net value of the fund is still plummeting; Therefore, novices choose funds, and if they are worried about unexpected risks, they will choose index funds.