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There are mainly two ways for investors to choose：
- (Regular Saving)
- (Lump Sum)
The above two methods are briefly described below.：
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Regular Saving |
Lump Sum |
| Definition |
Provide a fixed amount of money each time to purchase a pre-specified fund on a fixed basis (monthly, quarterly, annually) |
Directly deposit a whole amount of assets (cash + securities) into the account for management and trading |
| Suitable for |
People who are unable to grasp market trends and changes due to busy work schedules and have stable job incomes and want to pursue long-term stable growth of capital |
People who have large assets and are more able to grasp market trends |
| Advantage |
The concept of cost averaging is used to accumulate returns while also spreading the cost of investment, reducing the risk of investment timing errors; by avoiding fluctuations in business cycles and averaging unit investment costs, long-term normal returns on investment can be obtained.
(In economics, there are no excess profits in the long run.) |
Funds are more mobile and flexible, and can adjust to market changes. If you can intervene in the market at a low point and take profits at a high point, the rate of return on investment will easily become apparent. However, the whole transaction method must bear higher market risks. Therefore, investors who are not good at grasping market changes should choose a regular fixed amount investment method. |
| Regular fixed-amount investments and single investments each have their own advantages. If investors can build a complete investment portfolio and effectively combine these two investment methods, they can maximize their investment results and increase their wealth day by day. |
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