Choose an index fund with small tracking error to invest. There are three tracking errors of index funds: cash position, structural differences and cost factors. If any link is not controlled in place, the tracking error will be amplified. Generally speaking, the smaller the tracking error, the stronger the management ability of fund managers.

The tracking error of funds is common in index funds, which is the difference between the net growth rate of funds and the benchmark rate of return. The tracking error will not be tracked immediately every day, but will be published once every quarter.

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In the upward trend, it will be better to invest in those large-cap index funds. Large-cap index funds are funds that track the Shanghai Stock Exchange and Shenzhen Stock Exchange, and often have many constituent stocks. In the case of a good trend, the performance of the market index will certainly not be bad.

Investment index funds don't need to be too scattered. Many people say that investment is to spread risks! But you think, the fund itself is a risk diversification, and the stock portfolio in the index fund is the second risk diversification, and then the third risk diversification. If you do this, you will lose all the opportunities, but will reduce the income.

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