Category: Money tips Release Date: 2006-02-08
The average price of investment law, investment in index funds in this way, the possibility of achieving profitability will be much higher than just fooling large positions in a certain time to buy a particular stock.
Domestic fund companies are now starting to introduce such an investment approach that they call it fixed investment law to do on a regular basis, in fact, is the same thing. Regular fixed investment is what does that mean? In other words, investors at a fixed time (such as a date each month) to a fixed amount (eg, 500) invested in index funds on the specified. In this way, due to approaching point spread, making the same amount in the index when you can buy more low-end fund the number of units; the contrary, the index is high when the number of units to buy the fund will be automatically reduced, in line with "more than bargain-hunting buy, buy fewer rallies, "the sound investment principles. The long run, costs and risks of natural smoothing.
The average price of investment law to help us set an iron discipline on investment in the stock market downturn, in other investors to hesitate because of fear when it forces us time to put money into the stock market so that we acquired than expected more of the shares. It has brought us the mystery of profit is "buy low, buy low, buy low, buy high, buy low-sell high ... ... the final." Suppose we use the average price of 10,000 yuan for investment in France Shanghai 50ETF funds invested 1,000 yuan a month, the first month of the fund to buy 50ETF price 0.90 yuan each, assuming that after buying the quilt, and the price of every card 50ETF Fund months, to 0.10 yuan a price drop, when we invest in the first 6 months, when prices on the card 50ETF to 0.40 yuan, after that, 50ETF prices to rebound in the price of 0.10 yuan a month to the first 10 months of , 50ETF the price back to 0.80 yuan. The market value of our accumulated reached 13,041 yuan, achieving more than 30% of the profits. And if we had used 10,000 yuan one-time investment, then 10 months later the market value of only 8888 yuan, resulting in investment losses. This is the average price to buy France's magic lies - easy to operate, risk reduction, instead letting the time automatically to create wealth.
The average price method to use is the key to developing a good plan, sustained, long-term charge. Of course, if the fund over a period of net charge down the next period during which continued to fall, there is no profit, but a loss. However, if you have sufficient time, it can afford to wait, the net decline, they can accumulate more units of low-cost funds, until a rebound net worth rose, one can be earned back. Of course, all these assumptions is that you choose the end of the market is in decline or long-term overall increase in channel market. If you determine the market long-term trend down, even with an average price of law, can not escape the loss of doom.
Regular fixed investment law should not be too concerned about the long-term approach point in time, but when redemption is very important. Investors must remember that timely redemption is to preserve the fruits of victory in an important rule. Because if just hit the market tumbled, the fund net fall, then the patient before the accumulation of net worth would be greatly reduced.
Example, is expected to invest in Shanghai 50ETF fund as retirement funds, then it is a long-term investment funds, in the first three years of retirement should have started to look at redemption, to keep abreast of the best selling point.
And even plans to invest only in the period, or pay attention to the growth of the market conditions to adjust the plan. For example, the original plans to invest five years, three years later on the card chargeback 50ETF Fund prices record highs, are expected Quotes will enter another short cycle, it is best to call first profits in order to avoid facing the financial demands, just touch to the market price low.
Of course, you do not have a redemption of all of the fund units, may wish to redeem part of the fund units of access to capital, the remaining fund units can be temporarily retained until the trend uncertain before making a decision.
