Category: Money tips Release Date: 2006-04-19
In January of this year, I become a "base people", 200,000 invested in the stock market plunge last week, the loss is not small. Surrounded by the old "Christian Democratic" Tell me, I practice is called "single investment", if we adopt the "regular fixed" approach, we can effectively reduce the risk of timing. I ask, "periodic fixed," how to operate the Fund's investments are most effective?
--- The new Christian Democratic
The Fund's investments are usually two ways, one is a "single investment", one is "regular fixed," a one-off single investment needs come up with a sum of money invested, the investment costs are fixed, so the investment point of choice is important. While the latter is an automatic investment plan, commonly referred to as "the Fund on a regular basis Fixed Investment Plan", referred to as the Fund will vote, referring to the conduct of an investment at regular intervals, usually once a month investment. Point spread in this way of investment, the average investment cost advantage. Investors can even invest in only a few hundred dollars a month, living together into a more long run could accumulate considerable wealth.
At present, most fund companies have set up a fund to vote this business. Moreover, if know how to use certain investment techniques, we can increase the return on the fund will vote, the key lies in "market timing investment, profits appearance."
The League of Nations Stabilization Fund's marketing department early in 2004, after analysis, proposed a "smile on a regular basis Fixed Investment Law" --- If you fall in the stock market started the fund set to vote until the stock market up to the "earnings to meet the point", when redeemed, then the The results of your earnings will not only better than the index of performance, but also higher than when you started investing in the stock fund gains are even higher --- to buy the fund every month to sell the net with the final net connect with the curve, shaped like a human smile.
"Smiling curve" can tell you, if you are an active investor, willing to take risks to get higher reward points, you can start at the smiling curve rose to an annual average return rate of 15% or more, the wait for an opportunity to sell a profit; If you are a prudent investor, want to pay to achieve an optimal balance between risk, you can start at the smiling curve rose to an annual average of 7% of opportunistic profit-taking; if you are a conservative investor, be satisfied with more than fixed deposits slightly higher rate of return, you can start up at the smiling curve, when you can wait for an opportunity profits.
With the Shanghai Composite, for example, according to days relative to the information data, if starting from January 1994 the first trading day of each month at fixed investment funds, to April 6, 2004 to sell high during this period the Shanghai Stock Index The annualized rate of return of 9.41%. During the same period, we find that there are three best smile curve, the first one in February 1993 -1997 5-month period, after 51 months, the Shanghai Composite Index over the same period annual rate of return of -0.56%, while the regular fixed investment is a 36.23% annualized return; the second in May 1997 -1,999 years in June, after 25 months, over the same period index was 7.35% annualized return on a regular basis fixed investment is 40.54 percent annualized return; third is December 2001 -2,004 years in April, after 28 months, over the same period index was 0.19% annualized return on a regular basis fixed investment is 14.05% annualized return.
Edited in the gold-line
