There are two ways to purchase funds: one-time fund purchase and fixed investment. However, many new investors, after selecting a suitable fund, do not know whether it is better to buy one-time fund or to invest regularly. What? The following article will take you to find out.
Is it better to buy a fund in one go or make a fixed investment?
When the market conditions are good or investors have strong professional skills, it is better for investors to buy in one go. , the return of one-time purchase is higher than that of fixed investment. However, when the market conditions are poor and the investor's professional skills are not very good, fixed investment is better. Through fixed investment, the share of positions can be continuously increased to evenly share the cost of holding positions. Spread the risk.
At the same time, fixed investment also has the following benefits:
1. There is no need to consider the time point
Fixed investment is a long-term investment. By continuously increasing the holding share, To evenly share the cost of holding positions and spread risks, investors do not need to care about the time of entry or the market price. For one-time purchases, investors need to find the best buying time based on the trend of the fund's net value and other factors.
2. Save time and effort
When making fixed investment in funds, investors only need to set the time and amount of each fixed investment when purchasing the fund for the first time to ensure that the bank card As long as the funds are sufficient, it will automatically purchase and deduct funds, eliminating the need for investors to manually purchase each time, which saves time and effort compared with one-time purchases.
3. Compound interest effect
Compared with a one-time purchase, the expected return from a fixed investment in a fund is a compound interest effect. The interest generated from the principal is added to the principal to continue to derive the expected return. The effect of compound interest becomes more obvious as time goes by.