Seven iron rules of fund investment

According to the summary of past experience, the fixed investment of funds mainly has the following seven iron rules:

(1) Setting financial goals: there are different needs and goals in different stages of life. Generally speaking, students at school and young people who are new to the society can set goals to purchase their own money; married couples can prepare for their children's education fund and pension.

(2) Do according to one's ability: regular and fixed investment must be done easily and without burden. Before investing, it's better to analyze your monthly income and expenditure and calculate the idle funds that can be saved, 3000 yuan or 5000 yuan.

(3) Choose the market with upward trend: the market with oversold but good fundamentals is most suitable to start regular fixed investment. Even if the current market is at a low level, as long as you are optimistic about the long-term development in the future, you can consider starting investment.

(4) The investment period determines the investment object: the time compound interest effect of regular fixed long-term investment disperses the short-term risk of long short stock market and fluctuation of fund net value. As long as the long-term deduction principle can be observed, choosing the fund with larger fluctuation can actually improve the return, and the long-term return rate of the fund with higher risk should be better than that of the fund with lower risk. If the longer-term financial goal is more than 5 years to 10 years or 20 years, we might as well choose the fund with large fluctuation in net value. If the goal is within 5 years, we should choose the fund with stable performance.

(5) Persevere: long term investment is the most important principle of accumulating wealth on a regular basis and in a fixed amount. This method should last more than three years to achieve good results, and long-term investment can give full play to the compound interest effect of a regular and fixed amount.

(6) Grasp the timing of contract termination: the term of fixed investment should also be determined by the market situation. For example, the market has been invested for 2 years, and the market has risen to a very high point. After analysis, it is judged that the market may enter into another short cycle, so it is better to terminate the contract first and take profits. If you are about to face capital demand, for example, the retirement age is approaching, you should pay more attention to the market situation and decide the termination time.

(7) Make good use of partial contract termination and timely fund conversion: after regular fixed investment, if the contract must be terminated temporarily or the market is at a high position, and you are not sure about the future market situation, you do not need to completely terminate the contract, you can redeem part of the shares to obtain funds. If the market trend changes, we can switch to another rising trend market and continue to make fixed investment on a regular basis.