Investment Method Using Accrual Fund Management Techniques
An savings fund is an investment technique that lowers the average purchase price and reduces short-term volatility risk by investing a certain amount of money in the fund every month12. The rate of return of an installment fund varies depending on the type and period of the fund invested, market conditions, etc. For example, stock funds have large fluctuations in returns but are suitable for those who want to make aggressive investments, while bond or real estate funds have small fluctuations in returns but are suitable for those who want stable investments1.
In order to simulate the rate of return of an installment fund, you must enter the type of fund you wish to invest in, the monthly investment amount, and the investment period. For example, assuming that you invest 100,000 won per month in a domestic stock fund for 10 years, you can obtain the following results using the savings fund calculator 3.
Total investment amount: 12 million won
Total investment return: 11.09 million won<br
Total investment assets: 23.09 million won<br
Average Annual Return: 6.72%
Calculation formula reference site: koreainvestment.com
This is based on the average rate of return of domestic stock funds over the past 10 years, so it may differ from actual investment results. In addition, it is important to carefully compare and select the fees, management performance, and management principles of the fund you wish to invest in.
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