Fund investment is a relatively common tool for financial management. It is not as risky as the stock market and futures market, nor is it as stable as bank deposits, but the amount is very pitiful.

Therefore, fund investment is the focus of many financial managers. Different fund investments have different characteristics, and the investment method that is relatively more suitable for index funds is fixed investment. What are index funds?

Index funds use a specific index as the underlying index and use the constituent stocks of the index as investment objects. They build an investment portfolio by purchasing all or part of the constituent stocks of the index to track the performance of the underlying index. fund products.

At present, the more mainstream target indexes on the market can be roughly divided into two categories. The first category is the market index, which mainly includes the CSI 300 Index (blue-chip white horse stocks), the CSI 500 Index (small and medium-sized market capitalization companies), and the benchmark index. S&P 500 Index, Nasdaq Index, etc.; there is also an index for industry sectors, including pharmaceutical industry index funds, brewing industry index funds, media industry index funds, and military industry index funds.

The main characteristic of index funds is to track changes in different types of indexes. Changes in these indexes have become the main influencing factors on changes in fund returns. Because the main underlying targets are these indexes, and the changes in these indexes usually have historical similarities, it can be said that buying index funds is relatively easy.

Starting to buy after the market plummets, in addition to obtaining stable market average returns higher than the risk-free interest rate, you can also avoid the collapse of individual stocks caused by the explosion of listed companies, and at the same time, enjoy the next A bull market doubles earnings. Advantages of Index Funds

After understanding the characteristics of index funds, it is not difficult to understand why fixed investment is the best way to invest in index funds. American investor John Bogle can be said to be the pioneer of index funds. The world's first index fund was the index fund created by John Bogle that tracked the S&P 500.

When John Berg established the first index fund, no one in the market was optimistic about the future of index funds. The product that originally planned to raise US$250 million ended up raising just over US$10 million. Because generally speaking, the income of index funds may only obtain the average income of the market's rise and fall, and therefore it is unlikely to attract more investors.

But on the other hand, although the returns of index funds are not as attractive as high-risk financial products, there are only a handful of funds that can truly consistently outperform index funds. An investment service organization once released a research report that analyzed the performance of investment portfolios holding 10 types of assets from 1997 to 2012.

The results found that index fund investments performed better than actively managed investments 82% to 90% of the time. How to invest in index funds?

John Berg has an idea that "never leave the market." He opposes short-term betting and believes that leaving the market because of a decline and thinking about coming back in the future is a very stupid strategy, because the entry and exit The position cannot be judged at all, and if you move in and out frequently, you will eventually be defeated by your emotions while making constant mistakes.

Therefore, based on the characteristics of index funds, it is not difficult to find that fixed investment is the most suitable investment method for index funds. Seize the opportunity after the crash, choose to invest regularly for a period of time after the crash, and wait until the bull market to sell at the right time.