GUANGZHOU (Fund China) – A share’s performance since the fourth quarter of last year, liking the roller coaster is ups and downs all the way. Shanghai Composite Index as an example, easily broket the peak of 6100, and then sharply dived, fell to the lowest point 4700, and then rebounded to 5300 around. Such a wide congestion wave in the A share market, led to many worries of the fund net value growth for investors. Fortunately, the fund fixed period fixed quota service can diversify risk, average cost, and gain a long term yield, making the fund fixed period and fixed quota service more and more popular.

According to some relevant statistics, since the market adjusted, many fund took the business of fixed period and fixed quota service. There are about 70 funds open the fixed period and fixed quota busines or add the business outlets since last November. And then, are there any tips for fund fixed period and fixed quota speculation?

Penghua Fund Management indicated that due to the recent maket long and short position unclear prediction and the big Cap is mainly in a congestion, even a expert is still difficult to grasp the best timing(low in and high out) in such a unpredictable market. And it is really more difficult for the individual to grasp the timing. The fund fixed period and fixed quota service is equivalent to purchase the fund in different time of the year. The investment cost averages relatively and the risk declines obviously.

For the investors that is unwilling to bear the risk but wants to enjoy the harvets of the long term bullish market, the fund fixed period and fixed quota service with an advantage of smoothing the risk will be a better investment choice. Additionly, though some funds had closed the scheduled IPO purchase, investors can still participate the fund fixed period and fixed quota service. This is also an important factor that investors’ choice.

recently, it gradually appears a “fixed period and fixed quota” tide, and many investors rush ahead blindly into the trend without thinking twice. In fact, it also needs to pay attention to the strategy in the fund fixed period and fixed quota service. Investors should cool down in in investment.

First, select the quality fund, the fund with histroical good performance would be the best choice for the long term investment.

Second, not all the funds are suitable for the fixed period and fixed quota service, the mixed fund with wide wave and the equity funds would be prefered. Because the stock market has a greater influence in the two types funds. The fixed period and fixed quota investment can decline the risk and gain a long term yield..

Finally, investors should better use the online trading platform for the date change and the investment quota modification due to the different market conditions.

Copyright Fund China 2009.

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