Is the stock fund a fixed investment or a one-time purchase?
1 The market fell in one direction.
In this case, the fixed investment can dilute the holding cost by buying chips with lower price and more quantity in batches, and then make a quick profit after the market rebounds beyond the holding cost. However, due to the large investment, high holding cost and small holding share, it is naturally more difficult to make a profit.
2 One-way rise of the market
One-time investment can accumulate a large number of low-priced chips in the early stage, and with the continuous rise of the market, you can get a richer return on investment. The fixed investment of the fund will continue to buy high-priced funds, pushing up the holding cost and buying fewer shares. Although the process of fixed investment keeps profit as the market rises, the obvious profit return rate is lower than one-time investment.
3 The market rose first and then fell.
One-time investment has accumulated a lot of chips because of the initial one-time low price, while fixed investment has bought chips at both low and high positions, so the overall position cost is higher than that of one-time investment. When the market rebounds, one-time investment will also benefit from its low-cost advantage before fixed investment.
4 the market fell first and then opened.
Fixed investment is to buy in stages in the process of continuous decline, dilute the overall holding cost and gain more shares, while one-time investment only buys a small number of chips at a high price. When the market experiences a volatile market that falls first and then rises, the one-time investment will wait for the market to rebound longer, and the fixed investment will take the lead in making profits earlier than the one-time investment.
To sum up, the fixed investment and one-time purchase of equity funds have their own advantages and disadvantages, which are suitable for different scenarios. Before making a choice, investors should reasonably choose the fixed investment or one-time purchase of the fund according to the actual market situation.