People's living standards are getting higher and higher. Working hard to receive wages improves their quality of life. At the same time, people invest a certain amount of funds for financial management. There are many types of financial management. For most users, buying funds is a more robust investment method than buying stocks. When users usually choose to invest in funds, the first thing they hear is AIP.

AIP refers to investing in a designated open-end fund with a fixed amount at a fixed time. Compared with other financial management ways, it is relatively safe to choose AIP.

But it is not suitable for everyone. You should correctly know its merits and demerits, selection criteria and operating skills. Then you can be more rational in choosing fund management and avoid some mistakes.

Ⅰ. The Merits of Automatic Investment Plan

Automatic investment plan, also known as "lazy financial management". It adopts the method of fixed investment. The starting point is low and the method is simple. Investors only need to go to the fund agency to go through one-time procedures. Subsequent deductions and purchases will be carried out automatically. Compared with a one-time investment, it has the characteristics of accumulating more. The average investment cost greatly reduces the investment risk. As long as the selected fund has overall growth, investors will have a relatively average return. Investors no longer have to worry about choosing the right time to enter the market. Overall, the investment risk is relatively small. It is easy to operate and save time and effort.

Ⅱ. Demerits of Automatic Investment Plan

The investment risk of automatic investment plan is relatively small. But small does not mean there is no risk. The automatic investment plan still has certain risks. The risk mainly comes from the fluctuation of the bond market. If the stock market falls sharply, the account market value will certainly experience a sharp temporary decline. Automatic investment plan is a long-term financial investment. The income is slower. If the investor's goal is short-term, it is not advisable to choose automatic investment plan.

Ⅲ. The Selection Criteria of Automatic Investment Plan

How to choose the right automatic investment plan is also crucial. 1. It is best for the fund to be established for more than three years. The stability of the new fund is not strong enough. It is difficult to predict its actual rate of return. 2. The size of the fund should not be too large. Not conducive to timely exchange of positions. 3. Choose the fund with the highest fund ranking. Funds with high yields can have higher yields regardless of whether the market is rising or falling. It can be shown that the risk of this type of fund is lower than that of the lower-ranked funds. More suitable for automatic investment plan.

Ⅳ. Operating Skills of Automatic Investment Plan

Automatic investment plan is a relatively simple and stable financial management method among financial management methods. But investors still need to correctly know its merits and demerits. You should be clear of what you want to achieve and your current income status. Then choose the financial management way that suits you.