There is a way for fund fixed investment to obtain higher returns. We all know that increasing the amount of investment when the index fund is undervalued can help to obtain higher returns, but how much more fixed investment is appropriate when the index fund is undervalued? Let's learn together.
Regular and irregular investment
Principle: The more undervalued the index fund, the greater the investment value.
Method: The more undervalued the index fund is, the more it will buy.
The profitability method and Borg formula can help us judge which index funds are undervalued. In the process of investment, we'd better record the date, variety, operation, price, buying shares, valuation and other information of each purchase. In this way, it is easier for us to judge the value of index funds and adjust the investment amount.
But what is the specific calculation formula for the amount adjustment? Let's take a look at the three versions of the amount calculation method.
1. Earnings rate version amount calculation formula
Principle: The higher the profitability of the same variety, the greater the investment value, and you should buy more money.
公式：每月定投基准金额=低估时首次定投金额×(当月的盈利收益率/首次的盈利收益率)^n n是定投放大器
举例：我们从10%盈利收益率开始定投，定投的基准金额为每月1000元，设定n=1。定投第二个月发现盈利收益率达到了12.5%，则定投金额为：
1000×(12.5%/10%)^1=1250元
2. The calculation formula of the amount in the Berger formula version:
Principle: For the same variety, the lower the P/E ratio, the greater the investment value, and you should buy more money.
公式：每月定投基准金额=低估时的首次定投资金×(首次的市盈率/当月的市盈率)^n
举例：我们从市盈率11开始投资，定投金额为每月1000元，设定n=1。第二个月市盈率达到10，则定投金额为：
1000×(11/10)^1=1100元
3. Berger Formula Variant Amount Calculation Formula:
Principle: For the same variety, the lower the P/B ratio, the greater the investment value, and you should buy more money.
公式：每月定投基准金额=低估时的首次定投资金×(首次的市净率/当月的市净率)^n
举例：我们从市净率2.1开始定投，定投基准金额为每月1000元，设定n=1。第二个月市净率达到2，则定投金额为：
1000×(2.1/2)^1=1050元
Regular and quota free fixed investment can help us buy more in the undervalued stage of index funds, so as to obtain higher returns.
Through the previous example, we know that we can use the formula to help us obtain the amount of fixed investment that is undervalued, but there is also an important parameter n in the formula. What does n in the formula represent? How should I use it?
In fact, n is the amplifier of fixed investment income. Suppose that we start fixed investment from 10% profitability, the benchmark amount of fixed investment is 1000, and the profitability of the second month reaches 12.5%, then the fixed investment amount is:
设定：n=1 1000×(12.5%/10%)^1=1250元
设定：n=2 1000×(12.5%/10%)^2=1563元
We can see that the greater the value of n, the greater the amount of investment we will make when we underestimate, so that our long-term investment return will also be enlarged. Because we buy more when we underestimate, the long-term return will be better. The greater the value of n, the higher the final income rate we will get.
But how much of the n setting is appropriate? We know that the larger the n is, the greater the amount of capital we need to invest each month. The amount of capital for different investors is different, so we should act according to our ability and set our own investment amplifier according to our actual situation.
