The biggest advantage of fund fixed investment is that there is no need to choose a time period when buying, which means that it can be fixed whether it is a bull market stage or other stages
1. The ideal state of the fund's fixed investment
The ideal state of fund investment is to get out of the perfect "smile curve", reduce the cost of holding positions through continuous fixed investment, and quickly turn losses into profits when the market reverses. According to the "smile curve", the best stage is to start investing in a bear market and then harvest in a bull market.
The "curve" under this operation is indeed beautiful, but it is really unclear whether the maximum benefit can be obtained. For example, I have not invested in a bear market, but chose to invest at the beginning of the bull market at the end of the bear market, is it possible to get the maximum profit, after all, this time is to buy the most fund stocks with the same money.Most people are unable to make judgments and therefore cannot make the best investment strategy. Fund investment is to solve this "timing" problem, and "ideal" means that it can reduce the risk of the investment, not allow us to obtain the highest return.
2. Fund fixed investment in bull market
Some people say that the bull market is the upward stage of the market, and a direct one-time investment is the best choice, because in this way, you can buy at the lowest net value and get more fund shares. So can you tell when it's a bull market? Case in point: a series of long white candlesticks in early July last year drove many investors crazy that a bull market was about to take off, including the fund market. But did it really take off? How long will the market play between 3300 and 3700? Most of the people who bought the fund in July last year either just unwound or may have lost money.If you choose the fixed investment method, at least the cost of holding the fund is lower than buying it in July.
3. Other considerations
As far as the current investment fund people, although there are no specific statistics, but I am sure that a large part of them have no understanding of the market, and even many people have seen others invest in funds to make money before they start investing. Then it is completely impossible to distinguish between bull and bear markets to make fund fixed investments.
In addition, there is another factor that many working-class people are forced to save through fixed investment, and it is impossible to get so much money for one-time investment at once, and fixed investment is undoubtedly a better choice.
Fund investment is suitable for any stage, and bull markets are certainly no exception. However, for sophisticated investors, they can make some judgments according to their own investment ability, but can choose to invest at one time; But for novice investors. The best option is still the fixed investment of the fund. On the one hand, it does not need too strong investment ability, and on the other hand, it is to open positions in batches to reduce investment risks.
