After mastering the investment methods of index funds, we can get good investment returns, but what methods can we use to further improve our returns? Now let's learn some techniques to further improve the return on investment.
How can we maximize our returns by making fixed investments?
1. First, we should choose a good variety before investing It can increase our investment income. The income of different investment varieties is different. Some industries are inherently profitable industries, which are more suitable for our investment.
2. Choose a good price to buy , buy when the index fund is undervalued, which can improve the yield of our investment in index funds. We know that there is a big gap between investment and brainless investment when they are underestimated.
3. Look for good investment methods , involving the operation details of fixed investment, it can also increase our income.
We have mastered the methods of selecting good varieties of index funds and buying at the undervalued stage. What should we do with good methods for our investment?
For the same variety and the same undervaluation, the returns of different investors will be very different. So good investment methods also help us to improve long-term returns.
Does investment frequency affect returns?
A lot of new investors will encounter such problems. Is there any difference in the final income between monthly and weekly fixed investment? Which fixed investment method is better? In fact, there is a gap between monthly and annual fixed investment when our fixed investment time is relatively short, but if it is a long-term fixed investment, the gap will be very small when the fixed investment period is more than 5 years. This is because the index fund fluctuates greatly in the short term. If we catch up with the sharp fall or rise, it will have a great impact on the cost price of fixed investment in the short term. However, the impact will be less and less as the time of fixed investment increases. While we are preparing for long-term fixed investment in fixed investment index funds, from the perspective of income, the frequency of fixed investment has little impact on the final income.
Does the date of fixed investment affect the income?
At the beginning of the decision making, we will also encounter a problem, which day is better for the decision making? Is there any difference between the investment income and the fixed investment date? Is it definitely a good week or a good Friday? Is it better to make a decision at the beginning of the month or at the end of the month? In fact, in the long run, the day of decision making has little impact on earnings. After selecting the fixed investment date, we only need to consider our own capital income and choose a day convenient for investment. For example, we can choose to make a fixed investment on the first day after the salary is paid. We can force savings to prevent ourselves from spending money indiscriminately. In the long run, what kind of fixed investment date you choose has little impact on the final returns, but you should develop discipline after setting a fixed investment date, which is more conducive to long-term investment.
Does the amount of fixed investment need to be changed?
In fact, the change of fixed investment amount has a great impact on the final income. There are two main factors that affect our income, namely, the change of income and the change of investment variety valuation. Our income has changed over time. At present, the per capita disposable income in China is growing at an annual rate of 10%. As income increases, the amount of investment needs to increase. Therefore, we need to increase the amount of fixed investment with the proportion of income, which is generally 20% of our salary. When the salary increases, we also need to spend more money for fixed investment. In addition, the valuation is not static, because the stock price changes every day, so the valuation is also changing. When we encounter a lower valuation, we can increase the amount of fixed investment.
