The advantages and disadvantages of fixed investment in funds are enough to understand these points

When investing in funds, many people will choose funds and use fixed investment methods. So what are the advantages and disadvantages of fixed investment in funds? Have you paid attention to it in normal times? Let me tell you about this knowledge so that you can pay more attention when investing in funds and choose an investment method that suits you.

The advantage of fixed-term investment in funds is that you don’t have to pay attention to the trend of the fund all the time. You can automatically buy at a set time, saving time and effort, and you can pool your own idle funds. Through long-term investment, you can "Gathering sand into hills" allows you to accumulate a considerable amount of wealth, which you can sell when you need it.

Usually when making fixed-term investment in funds, you should choose some funds with great future growth potential. The net value of such funds will generally rise steadily, and users do not need to pay attention to short-term fluctuations. Because fund fixed investment is an investment technique that obtains stable income through long-term holding, you need to hold it patiently after buying.

Disadvantages of fund fixed investment: Although investors know when to buy, investors cannot effectively judge the accurate time when to sell; the dilution effect of fixed investment in the later period is getting smaller and smaller; in the case of unilateral rise, In the market situation, the cost of fixed investment will become higher and higher; the efficiency of fund use will not be high, etc.

When making fixed investment in funds, it is best to decide based on your own income. Do not invest too little or too much every month or every week. If you invest too much, it may affect your normal life. Generally, it is better to invest 5% of your personal income in fixed investments. However, as personal income increases, users’ monthly fixed investment amount can steadily increase.

When investing in a fund, if the user can accurately determine the low point of the fund's net value, he or she can buy the fund at once and hold it, then wait for the fund's net value to rise before selling. Generally, when investing in funds, you should pay attention to changes in the stock market. When the stock market shows an upward trend, users can invest in funds. At this time, the probability of making money will increase.