Choose a/fixed investment method

Many investors use OTC funds, set a time and amount, and automatically deduct money every month, saving time and worry, but I think this method has several shortcomings. Off-exchange trading is not as good as on-exchange trading. Let's take a look at the following comparison:

1. commission comparison:

Funds that use front-end fees for off-site fixed investment will pay the handling fee in proportion every month when they buy, which increases the cost of fixed investment. If you buy at the bank counter, the handling fee is 1.5%. If you buy in online banking, the handling fee is 60-20%. If you buy on the fund company's website, the handling fee is generally 40%. There is a redemption fee ranging from 0.25% to 0.5% at the time of redemption. Using OTC fixed investment funds, the average import and export cost is about 1 ~ 1.5% (there is no handling fee for reinvesting OTC dividends).

There is no handling fee for the back-end fund when it is purchased every month, and there is no handling fee for holding it for the time specified by the fund company (3- 10 years) and redeeming it. Therefore, it is best to choose funds with back-end fees for off-site fixed investment, but not all funds have back-end fees. If the holding time can't meet the requirements of the fund company, there is still a big handling fee.

Using floor trading, the average brokerage commission is 2.5 ‰, and some brokers can get a minimum discount of 1 ‰ (related to the amount of funds). Moreover, the threshold fee for 5 yuan can be cancelled, and the general entry and exit fee is 5 ‰. The friction cost of over-the-counter transactions (for example, front-end fee-based funds) is 20 ~ 30 times that of on-site transactions (there is no stamp duty for on-site transactions of index funds).

On-site trading can save fees and improve the fixed investment income of the fund. If our fund fixed investment strategy still wants to match the valuation rotation strategy, it is basically difficult to realize off-exchange trading, and the friction cost of on-exchange trading is quite small, which is convenient for us to carry out rotation operation. When the index valuation of investment enters the overvalued area, we can gradually sell index funds and buy fixed-income products.

2. Comparison of purchase operations

Over-the-counter trading price is determined according to the market closing price. There is only one trading price every day, and the on-site trading is subject to the real-time price. We can divide the monthly fixed investment into several points, and place orders at the positions where the index falls 1%, 2% and 3% respectively. When the index fluctuates in a "V" shape, the closing price will generally be higher than the purchase price, which will reduce the purchase cost, and those who have not made a deal will wait for the market adjustment before buying.

Summary:

Although the on-site fixed investment fund has many advantages, we need to implement it strictly according to the plan. Because on-site trading is more convenient, if we operate frequently at will, the effect may not be as good as regular off-site fixed investment.

2. Timing of fixed investment

Fixed investment is generally a long-term investment, and each purchase price has little effect on the result of long-term investment, but if you can choose the right time when you make a fixed investment, you can reduce the purchase cost.

1. Fixed investment in bull market

When the market is in a bull market, the market is basically volatile. In this case, you can choose to buy at the beginning of the month. Although you may not buy the lowest price, the index will generally get higher and higher by the middle of the month or the end of the month.

2. Fixed investment in a bear market

When the market is in a bear market, the market basically fluctuates downward. In this case, you can choose to buy at the end of the month Although it is not necessary to buy the lowest price, by the middle of the month or the end of the month, the index will generally be lower and lower.

3. Shake the city's fixed investment

When the market is in a volatile market, the monthly fixed investment can be divided into several parts. There are usually several negative lines every month. When the negative line or the large market is continuously adjusted, you can buy one. This kind of investment does not need to be watched all the time. You can place an order in advance (for example, 2% purchase), or you can decide whether you need to buy it at the close of 5 minutes.

4. Stop buying and repeat buying

It is forbidden to chase after buying when the market continues to rise sharply. No matter how strong the market is, it will adjust. When all index valuations are in overvalued areas, it is suggested to stop investing in index funds and buy fixed-income products, and then double the purchase after the index valuations fall.

Summary:

Timing is just to improve the yield of our fixed investment. I saw a backtest done by an investor on the Internet. If you buy dividend index funds from the historical high of 6 124 (10, 2007) to 3064 (1* * 65438) on August 27th, 2006. Adding timing and rotation on the basis of fixed investment can greatly improve our rate of return.

3/ A real case of fixed investment

One of my female colleagues, who is engaged in finance, never speculates in stocks. She told me her investment strategy when chatting the other day. After the index reached 4000 points last year, she stopped the fund's fixed investment. After the market went crazy to 4500 points, she has been slowly redeeming the fund. In June 18 and 19, two consecutive big yinxian lines made her decide to redeem all the fixed investment funds, and the income of this round of fixed investment funds basically doubled. Many stocks in the market can't be sold at all because of the continuous down limit, and the fund has not reached the point where it can't be redeemed.

The index fell by 3,373 points from the highest close to 5,200 points. By July, the index began to rebound. She feels that there is still enough room to fall and she is ready to make a fixed investment in the fund. Not sure whether it bottomed out, she changed her method and divided the fund into many shares. Instead of buying at a fixed time, the index fell 2%, bought 4%, bought 3% and bought 8%. From July last year to now, although she has experienced several rounds of stock market crash, the return rate of her fixed investment fund is actually around 10%, which should outperform most investors and fund products. This strategy is suitable for investments in volatile markets, which can ensure that your buying is at a relatively low level.

IV. Conclusion

Many people look down on the fixed investment of index funds. In fact, this method is suitable for most of our office workers. We don't have much time to study stocks, and we don't want to make big money or quick money in the capital market. The probability of setting reasonable goals is still relatively high.

A friend also wants to give her children a fixed investment as a future education fund, but when she sees that the index has risen a lot from the lowest point, she is afraid to start. In fact, the current point (such as dividend index, it is not recommended to invest in overvalued index) has little effect on our fixed investment. An education fund should be invested at least 10 years, and the short-term rise and fall in the future is only a small wave.

When the index is lower than the historical average valuation, it will gradually decide to buy, and when it reaches the historical average valuation, it will gradually stop buying and adopt a rotation strategy, which will bring better returns to the investment of index funds.

No investment method is suitable for everyone, and finding the one that suits you through practice is the best way.