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Is The Fund Fixed Investment A Desirable Investment?

2012/4/8 19:43:00 15

Fund Fixed Investment Index Fund Investment Mode

Index Fund

In particular, is the index fund fixed investment is the most suitable way for ordinary investors to invest?

Monthly

Fixed investment

1000 yuan, from December 19, 1990 to August 31, 2007, the total number of investment periods was 201, the closing price rose from 99.98 to 5218.83, the net value of simulated funds increased from 0.9998 to 52.1883, the cumulative share increased from 1000.20 to 26851.30, and the cumulative rate of return was 697.18%.

This rate of return is obviously misleading: from a historical minimum to a record high, it has not been considered after 2007.

Stock market

The big bear market has calculated a bull's "cumulative rate of return" up to 7 times.

Obviously, if we extend the inspection period to October 31, 2008, the so-called "cumulative rate of return" will be completely different.

When the picture was sent to micro-blog, the netizens had good opinions.

One of the netizens thinks that the fixed investment is a kind of "investment in the bull market in stable running loss index, and stable losses in the bear market for many years" investment way, is "I have heard the most stupid and at the same time has the most people's faith" method; two of netizens is more interesting, he thought, "this table can only say that the one-time investment is better than the fixed investment, because if you first locked in the stock market, the rate of return to the end of the table has exceeded 5000%, far better than the fixed investment"; three of the netizens concluded that "fixed investment is based on the theoretical basis of the long-term rise of the market, if the premise is wrong, the back is all free."

Obviously, like any other investment mode, the fixed investment of index funds also has its own inherent defects.

On the surface, fixed investment seems to solve the intractable "timing problem", but in fact, under the cloak of "fixed investment" curtain, the problem of "timing" still exists, and the difficulty level has not been reduced.

Any investment behavior is the operational expression of investors' judgement of the future operation of the market.

The essence of fixed investment is that investors continue to make more markets in one direction. As time goes on, the positions become heavier and heavier.

If the market suddenly turns into a short run, the harm to the head can be fatal.

So why do we feel that Buffett and Rodgers have invested in index funds to ordinary investors?

One answer is that the masters have solved the "timing" problem for investors.

For example, Buffett will recommend stock index funds to investors in 2003 and 2004, instead of recommending stock index funds to investors in 2007; Rodgers will recommend commodity index funds to investors in 1999, rather than recommend stock index funds to investors at the same time.