The fixed investment of the fund is the timing of a big cycle, and it is necessary to weigh the choice between price positions A and B.
Although we don't have to try to start a fixed investment at the lowest point, if we don't have a good judgment on the market trend, it is likely that the account will face losses after one-time purchase. The more the market falls, the greater the loss.
The reality is whether many investors can achieve "precise timing".
Fixed investment is different. As long as the fund's fixed investment starts from the bottom area of asset prices, the effect of fixed investment will be better.
Fixed investment will enter the market in batches, and the more the market falls, the cheaper the chips will be.
In a bear market, as the stock market index falls, the more stocks you can buy. By continuously buying in the later period and continuously reducing the cost, the loss will be less and less, and as long as the market improves slightly, it will be profitable.
Investing in a bear market, a fixed investment can help us weaken this fear.
Buffett said: Fear when others are greedy, and be greedy when others are afraid. That's really good, but how many people do it in reality?
Investment is anti-human and "fear" is one of the weaknesses of human nature.
This is innate, especially when it is low. I am afraid that the market will continue to fall or plummet after buying it. I don't know when the market will improve. I am under a lot of pressure. Therefore, the most difficult thing is the bear market's control of positions, because in essence, human beings' ability to cope with pain and loss is the weakest!
Tips for fund fixed investment
1, foundations with large fluctuations are more suitable for fixed investment. The income of bond funds and monetary funds is generally relatively stable, with little fluctuation, and there is no advantage in fixed investment. However, the long-term returns of stock funds, hybrid funds and index funds are relatively high and fluctuate greatly, so it is more suitable to use fixed investment to balance costs and risks and accumulate funds by snowballing.
2. In the bear market, you can also set the way of fund dividend as "share dividend" instead of the default "cash dividend", because the advantage of "share dividend" is that the income is distributed in the form of fund share instead of cash, which saves the step of buying the fund in cash again and avoids paying the subscription fee repeatedly.
3. Fixed investment is not just about investing and not selling. Choosing a reasonable income target (such as 10%) and making profits in time is the key to the fixed investment.
4. Pay attention to the distribution of capital gains. Fixed investment requires regular investment, so a stable income flow is very important. For friends who are ready for funds, what needs to be done is patience. Generally speaking, it is best to control the salary of friends within 20% of their monthly income.
5. Stick to the fixed investment and don't stop it easily. Fixed investment is an investment method that brings great wealth by long-term accumulation, and persistence is the key. When the market falls, don't suspend fixed investment (or even redemption) because of short-term losses. This practice lost the opportunity to get more fund shares with the same amount when the fund's net value fell, and missed the advantage of the fund's fixed investment to share the cost equally.