First of all, we mainly look at the composition of constituent stocks. Looking at the rising space of constituent stocks, it has good investment value. Look at three important features,

1 See if the liquidity of constituent stocks is good.

2 the profitability of constituent stocks is not strong.

3 is there much room for growth?

The summary is: choose the index, look at the rate and look at the index fitting.

In addition, indexed investment reflects the overall expectation of the market for the future under all uncertainties. At any time point, the trend of the index has reflected the influence of various factors on the market to the greatest extent. During the recent bull market, there were few opportunities for short positions. If you encounter a bear market or a volatile market, you don't need to ride a roller coaster with the index, but mainly hold it in the rising band, and the result is likely to exceed the return on investment of most mass investors. After choosing a good fund, you can also consider buying at the right price. The cheaper you buy, the more you will earn in the future. After the above series of selections, I believe some alternative funds have been screened out. We can choose index funds with normal or low valuation according to market conditions, so that there will be more room for subsequent profit. Just like going to the market to buy food, the price of pork has been rising recently, so basically the prices of all stalls will go up with it.

In addition, the shortcomings of index funds:

1 fluctuates greatly. Not suitable for short-term operation.

2. Lead the rise but not resist the fall. In any market, the position of index funds is very high, and it is impossible to avoid the risk of the stock market through the operation of fund managers.

3. The fixed investment of the fund is not applicable in all cases, and the effect is very different.

Finally, choose a brand company. To choose a fund, you must first choose a company. Because fund management companies are also enterprises. The capital strength, shareholder strength, operation scale, investment and research system, risk control ability, product innovation ability, and especially investment culture of fund management companies all play a very important role in fund management and operation. At present, retail investors are still the dominant force in the A-share market, and institutions are harvesting retail investors. So at this stage, the income of active funds is likely to exceed that of passive funds. Therefore, the most important thing at this stage is to carefully screen fund managers and choose veterans with outstanding past performance and experienced a wave of bull and bear markets. To sum up, the key to investing in index funds lies in the choice of index funds. The difficulty lies in a definite word, whether it is unhappy about things or sad about yourself. Only by adhering to self-discipline for a long time can we reap the huge benefits of investment!