Research On Investment Value Of Index Funds Based On Fixed Investment Strategies

Since Benjamin Graham first proposed the Dollar Cost Average Strategy(DCA)in his book "Smart Investors" in 1949,the research on the fixed investment strategies in foreign academia has lasted for nearly 70 years,and now has formed three major factions which are the DCA,the CS and the VA.In the western capital market,the fixed investment strategy has withstood a long time of test,through the stock,fund and other financial instruments,proved itself to be an effective investment strategy.We are eager to know whether the performance of the fixed investment strategy is the same in the A-share market.In this paper,we apply the fixed investment strategies to the simulation investment of the index fund(Jiashi CSI 300 index),and make a quantitative measurement of the performance of the three investment strategies in 1,5 and 10 years.Overall,the three strategies have achieved good yield performance,but not good performance in individual periods.Through the analysis of these cases of poor performance,we find that the starting and ending points of the fixed investment strategies have a great impact on the yield,especially in the A-share market with obvious bull-bear rotation.In order to better adapt to the A-share market,we try to introduce P/E ratio to help confirm the start and exit intervals of the investment strategy,hoping to further reduce the risk in the investment process and properly improve the return on investment.Through a series of quantitative measurements,we find that P/E ratio,the fixed investment strategies and index funds are well matched,and our expectations are met.