What are the differences or benefits between fixed investment and fund purchase?

Generally speaking, there are two ways to invest in funds, single investment and regular quota. The method of regular quota is similar to the "zero deposit and lump sum withdrawal" method of bank savings. The so-called "fixed quota" means investing in the same open-end fund at regular intervals (such as 25th of each month) with a fixed amount (such as 500 yuan). Its biggest advantages are average investment cost and avoiding timing risk.

Advantages of periodic quota

First, invest regularly, every little makes a mickle. Investors may have some idle funds from time to time. By purchasing funds through regular fixed investment plans and increasing the investment value, you can "accumulate sand into a tower" and accumulate a lot of wealth unconsciously.

Second, automatic deduction, simple procedures. You only need to go to the fund agency to go through the one-time formalities, and the deduction subscription for each period in the future will be automatic.

Third, average investment and spread risks. The capital is invested on schedule, and the input cost is relatively average, which maximizes the risk dispersion.

Suitable for who?

1, office workers with fixed wages:

After deducting the daily living expenses, the salary income of most office workers is often small, and a small amount of regular investment is the most appropriate. Moreover, because most office workers can't go to financial institutions to go through the subscription procedures in person during office hours, it is the most time-saving and trouble-saving way for office workers to set up automatic deduction fixed investment in designated accounts.

2. Those who need special funds at some time in the future:

For example, you have to pay the down payment for buying a house three years later, the fund for your children to study abroad 20 years later, and even your own retirement pension fund 30 years later. Knowing that there will be a large amount of capital demand in the future, planning in advance by means of regular fixed small investment will not only cause economic burden to yourself, but also turn small monthly money into big money in the future.

3. People who don't like to take too much investment risks:

Due to the advantage of weighted average investment cost, regular investment can effectively reduce the overall investment cost, reduce the risk of price fluctuation, and then enhance the opportunity of profit.