English Chinese translation sample-Defined Fund Investment Plan -Introduction and advantages

（Edited by freelance Chinese translator li – English to Chinese translation or Chinese to English translation services- financial translation）

Defined Fund Investment Plan
☆ Introduction
A service for investor to buy a fixed sum of fund product that ICBC represents at regular intervals within a certain investment period, or simply speaking, a kind of finance service similar to Club Deposit. Starting from the second day after signing up the service, ICBC system automatically make deduction on the first day of each month based on the amount and investment years you stated. Deduction will be continued on the next day if the balance in the account is not enough. Minimum investment for monthly deduction is RMB 200. Procedure for trading hours, charges, purchase price and redemption of fund are the same as fund purchase.
基金定投
　　☆服务简介
　　基金定投计划是指在一定的投资期间内，投资人以固定时间、固定金额申购银行代销的某支基金产品的业务。简单的说是类似于银行零存整取的一种基金理财业务。您开通基金定投后，我行系统会根据您申请的扣款金额、投资年限，自动每月扣款。从您开通基金定投业务的第二月起，我行系统根据您申请的金额、年限，自动每月第一天开始扣款，若账户余额不足，将在第二天继续扣款。每月投资最低扣款金额只需200元。交易时间、交易费用、购买价格、基金的赎回一般与正常申购相同。

Defined Fund Investment Plan has the following advantages:
1. To minimize risk through reducing investment cost over time by dollar-cost averaging.
For a single investment, the plan is as a mid/long-term investment. Every month a fixed deduction is made regardless of market movements. The investor needs not to worry about selecting the right time. Investment cost is reduced by the technique of long-term averaging. Fewer shares acquired when fund's NAV goes up and more acquired when NAV goes down. In this way, investment cost and risk is naturally shared over time.
　　基金定投计划有如下几个优点：
　　1. 利用平均成本法摊薄投资成本，降低投资风险
　　对于单笔投资，定期定额属于中长期的投资方式，每月固定扣款，不管市场涨跌，不用费心选择进场时机，运用长期平均法降低成本。类似银行的零存整取，不论市场行情如何波动，定期买入定额基金；基金净值上扬时，买到较少的单位数，反之，在基金净值下跌时，买到较多的单位数。长期下来，成本及风险自然摊低。

Long market (Prices of stocks go up) Short market (Prices of stocks go down)
Sum invested at regular interval Unit Price Units Bought Unit Price Units Bought
￥1,000 ￥1.00 1,000.00 ￥1.00 1,000.00
￥1,000 ￥1.02 980.39 ￥0.98 1,020.41
￥1,000 ￥1.05 952.38 ￥0.95 1,052.63
￥1,000 ￥1.05 952.38 ￥0.95 1,052.63
￥1,000 ￥1.08 925.93 ￥0.92 1,086.96
Total ￥5,000 Total 4,811.08 Units Total 5,212.63 Units
Average Unit Cost ￥1.0392
=（￥5,000/4,811.08）
￥0.9592
=（￥5,000/5,212.63）
Average Market Price ￥1.0400=（1.00+1.02+1.05+1.05+1.08）/5
￥=0.9600（1.00+0.98+0.95+0.95+0.92）/5
多头市场（股票上涨时） 空头市场（股票下跌时）
定期投资金额 单位价格 购得单位数 单位价格 购得单位数
￥1,000 ￥1.00 1,000.00 ￥1.00 1,000.00
￥1,000 ￥1.02 980.39 ￥0.98 1,020.41
￥1,000 ￥1.05 952.38 ￥0.95 1,052.63
￥1,000 ￥1.05 952.38 ￥0.95 1,052.63
￥1,000 ￥1.08 925.93 ￥0.92 1,086.96
合计￥5,000 合计4,811.08单位 合计5,212.63单位
平均单位成本 ￥1.0392
=（￥5,000/4,811.08）
￥0.9592
=（￥5,000/5,212.63）
平均市价 ￥1.0400
=（1.00+1.02+1.05+1.05+1.08）/5
￥0.9600
=（1.00+0.98+0.95+0.95+0.92）/5

The above table clearly shows the result of a fixed sum of RMB 1,000 investment every month, in which the average cost of fund is below average market price regardless of long or short market. Investor can remain calm even in short market since more shares can be bought at the same cost within this period. Even more profit once long market arrives after short market comes to an end.
　　由上表可以很清楚地看到，每个月固定投资1,000元的结果是，不论多头或空头市场，所取得基金的平均成本都比平均市价低，所以投资者利用定期定额方式投资开放式基金，即使面临空头市场也不必惊慌，因为在这段时间里，以一样的成本反而可以买到较多的单位数，一旦空头市场结束，多头市场来临，获利则更为可观。

2. No need to consider when to invest
To invest means "To buy at low price, and to sell at high one", but quite a few can catch the best time to buy and sell. Main reason behind is that common investors always fall into the blind spot - "Go out for profit, Stay away from loss". When the market lapsed into dismay and bearish, investor procrastinates and delays, though it is understood that this may be a good time to invest. Similarly, when a market distinguished by rising prices, most people can't help but keep on dumping money with a thought that profit has already attained. When new rounds flood in, everybody rushes to invest, making it difficult to make intelligent investment or trading decisions. To avoid losing track, investors can invest without clouding judgment with emotion through this plan. It doesn't matter when to invest, nor what the market price is. The short periods of fluctuations in stock market won't affect the long-term strategy.
　　2. 完全不用考虑投资时点
　　投资的要诀就是“低买高卖”，但却很少有人可以在投资时掌握到最佳的买卖点获利，其中最主要的原因就是，一般人在投资时常陷入“追高杀低”的盲点中，因为在市场行情处于低迷时，即使投资人知道是一个可以进场的时点，但因为市场同时也会陷入悲观的气氛当中，而让许多投资人望而却步；同样，在大盘指数处于高位时，眼见股价屡创新高，许多人即使已从中获利，也会忍不住地将钱再次投入股市，而新的资金也会不断地涌入，制造热烈的投资气氛，让人难以理性判断投资行情。因此，为避免这种人为的主观判断，投资者可通过“定投计划”来投资股市，不必在乎进场时点，不必在意市场价格，无需为股市短期波动改变长期投资决策。

3. Small money for large investment
"Don't put all your eggs in one basket" is a rule of thumb to share risk. However, it needs a large capital to invest in different quality stock under limited fund . Since fund itself means to invest using money collection, investor can use a fraction to invest in different stocks. Under Constant-Dollar Plan, money needed for investment is even less, with a minimum of only RMB 200 per month. Investor can personally add the amount when future income improved. The plan is very suitable for white collars or persons with fixed income every month.
　　3. 积小成多，小钱也可以作大投资
　　“不要把所有鸡蛋放在同一个篮子里”是分散投资风险的一个重要法则，然而在资金有限的情况下，投资不同行业的绩优股需要有庞大的资金。由于基金本身就是集合众人的资金来投资，因此基金投资人便可将极少的投资资金分散在不同的股票投资上。而以定投方式投资基金，所需的资金更低，每个月最低只需要200元即可，投资人还可视自身的状况，在未来收入增加时，随之增加定期定额的投资金额，非常适合上班族或每个月有固定收入者来利用。

4. Compound effect in long-term
Return from "Defined Fund Investment Plan" shows a compound interest effect. Interests gained on principal together with the earnings continuously derived shows an obvious compound effect as time goes by. "Defined Fund Investment Plan" needs longer time to show this effect, and it is not a good move to terminate the plan while the market in short swings. As long as market remains buoyant, short-term downside is a good time to accumulate more unit numbers at a lower price. Once the market rebound, unit number accumulated over a period can be used to gain profit in one slot. The plan should be targeted at savings for children's education and pension in the mid/long term.
　　4. 复利效果长期可观
　　“定投计划”收益为复利效应，本金所产生的利息加入本金继续衍生收益，通过利上加利的效果，随着时间的推移，复利效果越明显。定投的复利效果需要较长时间才能充分展现，因此不宜因市场短线波动而随便终止。只要长线前景佳，市场短期下跌反而是累积更多便宜单位数的时机，一旦市场反弹，长期累积的单位数就可以一次获利。理财目标则以筹措中长期的子女教育金、退休金较为适合。