Index funds include broad-based index, strategy index and industry theme index. Among them, for beginners, the broad base index is the first one, because it is more stable and simpler. Common broad-based indices include SSE 50, CSI 300 and CSI 500. Among them, CSI 500 has low valuation and high cost performance.

The CSI 500 Index was born on 20 15. 20 15 reached an all-time high of 1 1000, and then fell all the way. The lowest value of 20 18 is less than 4000, and it is still hovering around 5400. In terms of other broad-based indexes, after 20 17, the A-share market entered the market of large-cap stocks, blue-chip stocks and white-horse stocks led the gains, and both the SSE 50 and the CSI 300 rose.

The main reason can be analyzed from the direction of the constituent stocks of the China Securities 500 Index. The constituent stocks of CSI 500 Index are composed of the top 500 stocks in Shanghai and Shenzhen stock markets after excluding 300 stocks in Shanghai and Shenzhen 300. The companies included in the CSI 500 Index are all emerging industries with future development direction, which can be said to be the most potential companies.

Among the constituent stocks of CSI 500 Index, the top three sectors are information technology, industry and materials, which can better represent advanced manufacturing, advanced materials and a new generation of information technology. Heavyweights tend to emerging technology industries, and their growth style is more obvious.

When the economy is improving, the CSI 500 index may rebound greatly. If there is a bull market in the future, CSI 500 has a great chance.

From the perspective of growth, the CSI 500 Index has great potential and space in the future, and it is an index worth investing in. If you want to choose between broad-based indices, you need to consider your risk preference comprehensively.