What are the index funds suitable for fixed investment?
The essence of the index is to screen out listed companies that want to invest according to specific rules. The index of selecting constituent stocks according to the market value of stocks is called broad-based index; According to different industries and different themes, the index of constituent stocks is the industry index.
For beginners, it is suggested that the fixed investment index funds should start with broad-based indexes, such as SSE 50 Index, CSI 300 Index and CSI 500 Index. The best time to invest in index funds is when the index is undervalued.
On the whole, the SSE 50 Index and CSI 500 Index are relatively undervalued. After selecting the index, you should choose the corresponding index fund. The same index, the corresponding index fund is similar. If we want to pursue perfection, we can consider it from the perspectives of fund size, fund cost and tracking error.
The bigger the fund, the better, because the large-scale fund has good liquidity and is less affected by the redemption application of new investors, and the stability of the fund is better; For the fund cost, you can choose the fund with lower management fee and custody fee appropriately to reduce the investment cost;
As for tracking error, the purpose of index fund is to track the performance of index. It is only a tool of our investment index, so the lower the tracking error, the better. The annual tracking error should be less than 1.5%. Ok, what are the index funds suitable for fixed investment? I hope it helps you. Warm reminder, the fund is risky and needs to be cautious in investment.