"Investor Protection-Rules, Risk Knowledge" Case XXII.

-- New investment posture: fund fixed investment

1. what is the fund fixed investment?

Fund fixed investment is short for fixed investment fund, refers to every fixed time, a fixed amount of investment in a fixed fund. By adopting the method of fund fixed investment, investors do not need to choose the timing of entry from time to time, but only need to set up the amount, investment time and target of each investment in advance, and then invest on time according to the plan, during which they can also apply for suspension or redemption at any time. The principle of profit from fixed investment lies in the use of the average cost method to share the cost, through long-term adherence to fixed investment, the use of time compound interest effect to achieve the purpose of profit. Fund fixed investment has the characteristics of low participation threshold, convenient operation, risk diversification and flexible investment, which can avoid the difficulties of individual investors in stock selection and timing when investing in the stock market, as well as the problems of lack of professional knowledge or limited funds.

What are the advantages of 2. funds?

Fund fixed investment this investment method, the time, amount, fund are pre-set. Its advantages are:

First, the fund is set to use the discipline of time in exchange for investment space, to avoid the fear or greed of investment when influencing investment decisions, more effective accumulation of wealth.

Second, it is difficult for the average investor to get the right time to invest, often buying at market highs and selling at market lows. The average cost investment approach avoids the risk of short-term swing and the trouble of chasing up and down.

Third, the fixed investment of the fund can effectively share the cost and reduce the risk to a certain extent through the phased investment of funds, which is suitable as a medium-and long-term financial management method.

3. who is suitable for the fund fixed investment?

The first category is people who lack sufficient time or expertise to study the market. The time, amount and fund of fixed investment are all pre-set. For investors who lack enough time or professional knowledge to study the market, fixed investment saves time and effort, and can obtain good investment returns in long-term investment.

The second category is people who are afraid of high volatility in their investments and want some return. Fixed investment adopts the batch buying method, which overcomes the defects of only choosing one time point to buy, can more effectively balance the cost, reduce the risk of investment, and do not miss opportunities when the market rises.

The third category is people who are easily affected by market sentiment. Individual investors are more susceptible to market sentiment in the investment process, and are prone to some investment behavior deviations, such as herd effect, disposition effect, etc., which may make investors ignore market risks or miss good investment opportunities. The process of fixed investment does not require human intervention, which greatly reduces the negative impact of investment behavior bias on investment.

The fourth category is people with a fixed monthly salary. By investing a certain amount of funds every month or every period of time, on the one hand, you can make reasonable planning and arrangements for your own income to avoid excessive consumption; on the other hand, long-term adherence to fixed investment can generally obtain a certain amount of investment income and realize wealth. The preservation and appreciation of value.

Which funds are 4. suitable for fixed investment?

Not all funds are suitable for fixed investment. For example, money funds, bond funds, the volatility itself is very small, a direct one-time purchase can be, there is no need for long-term fixed investment. Funds suitable for fixed investment generally have the following characteristics:

Volatility is large. In general, volatile funds are suitable for fixed investments, such as index funds and stock funds. The more volatile the fund, the more it can smooth the cost through fixed investment, and when the market rises, the higher the return of the volatile fund.

Low valuation. It's not enough to choose only volatile funds, and the fund has to focus on valuation when choosing a target fund. At present, the mainstream selection method is based on the PE valuation of the index tracked by the fixed investment fund, the lower the valuation of the index fund, the more suitable for the layout of fixed investment.