A Study On Fund Average-in Strategy Under The Guidance Of The Investment Clock

In recent years, the average-in method is widely used in the open-ended fund investment market, on one hand, it can effectively overcome psychological disruption in real practices, and on the other hand, it reduces investors’ position cost. Nowadays, there are plenty of papers studying the average-in method, but few of them discuss the region of which the averaging method is used under the guidance of investment clock. There are huge spaces to discover when it especially comes to the question that whether this approach is suitable for Chinese capital market or not.This paper first illustrates the background and concept of the investment clock as well as its application in overseas markets, then it explores the division of the Chinese economic cycles with the consideration of capital markets’ peculiarity, Secondly, based on the needs of the high net-worth clients’ asset allocation, a discovery is carried on in the paper hoping for figuring out the feasibility of the average-in method used under the guidance of investment clock from three applicable perspectives. On empirical study, with the test of multiple open-ended funds’ historic statistics and comparison of the test result with the original average-in method, this research finds out the test result indicating the risk level and the profit level are significantly better than the original averaging method after the test with the real investment clock calculator. All in all, it can be applied to the development of domestic high net-worth clients as well as the investment practice...