First, there are two completely different ways to invest in funds.

First, invest in active funds. Find a professional fund manager, then give him all your money, trust him completely, and let him manage stock selection, timing and positions. The advantage of this investment method is that it saves worry and effort, and it also increases some management fees and custody fees. Use this money to hire a highly educated and experienced professional to manage your assets. However, because the most critical step for active funds is to choose the right person for the fund, while investing in Xiaobai often doesn't know much about the fund manager's ability, experience, style and design method of fund products, and they are more easily confused by the mass media and attracted by the short-term performance of fund products, so when the market is hottest, they accidentally buy products whose risk level doesn't match their affordability, and finally they can only cut their meat with tears.

Second, investment index funds. Choose suitable indexes, reliable fund companies and excellent fund products through your own judgment and make trading strategies according to valuation indicators. This requires systematic study.

These two ideas complement each other, in essence, you only need to know one of them. But we recommend the second idea of fund investment, because the fund selected according to the method and the investment strategy formulated can make you more confident. At the same time, historical experience also tells us that the performance of index funds is better than the average performance of active funds.

Third, there are two ways to choose index funds. The first idea is to find the varieties with the lowest cost and the smallest tracking error, which is advocated by John Berg, the "father of index funds". The second way of thinking is to find characteristic index-enhanced funds and strategic index funds.

The first step is to determine the index you want to invest in. As we know, A shares have five mainstream broad-based indices, namely SSE 50, CSI 300, CSI 500, GEM and dividend index. Among them, the CSI 300 reflects the income of mainstream investment in the market, while the CSI 500 reflects the stock price performance of a group of small and medium-sized companies in China A-share market. We will choose these two indexes this time.

The second step is to choose a reliable fund company. Reliable fund companies have excellent managers, mature investment models and professional risk control means, which can make investors' fund products obtain more stable income. There are many ways to choose a reliable fund company, such as choosing the top ten fund companies, managing companies with a scale of more than 100 billion, and outperforming similar companies. The top ten fund companies in index fund management scale are selected here: Huaxia Fund, E Fund, southern fund, Wells Fargo Fund, cathay pacific fund, Guangfa Fund, Huaan Fund, Bosera Fund, ICBC Credit Suisse Fund and Penghua Fund.