Index fund refers to a fund product that takes a specific index as the target index, takes the constituent stocks of the index as the investment object, builds a portfolio by purchasing all or part of the constituent stocks of the index, and tracks the performance of the target index. Today, Bian Xiao has compiled some fund-related knowledge for everyone. Let's have a look!
How to buy an index fund with a fixed investment?
Index funds are more suitable for fixed investment, and investors can choose high-quality targets for investment. Historically, index funds have a higher probability of long-term fixed investment. Investors can choose high-quality funds from three aspects: fund manager, historical performance and maximum withdrawal. The longer the fund manager works, the better. You can also look at the performance of fund managers in managing funds. The higher the historical performance, the better. Withdrawal refers to the interval from the highest to the lowest net value of the fund within a period of time, and the lower the withdrawal value of the fund, the better.
For investors, there are two channels to buy index funds: one is to buy index funds through their own banks, over-the-counter fund subscriptions in stock accounts or fund companies and other websites; The second is to buy index funds in the secondary market through stock accounts. The former refers to OTC funds, and the latter refers to OTC funds, which are limited to the purchase of index funds listed on the exchange, such as index LOF and ETF.
Is the fixed investment of index funds compound interest?
Compound interest means that when calculating interest, the interest of a certain interest period is calculated by the principal plus the total interest accumulated in the previous period, which is also commonly known as "rolling interest".
Index fund fixed investment is compound interest, and fixed investment funds are compound interest. The income generated by the fund will become a part of the principal, and the subsequent ups and downs will fluctuate on the basis of gains or losses, so it belongs to compound interest.
Index fund is a fund product that takes a specific index as the target index, takes the constituent stocks of the index as the investment object, builds a portfolio by purchasing all or part of the constituent stocks of the index, and tracks the performance of the target index.
Where can I buy index funds?
An index, as its name implies, is a fund product that takes a specific index as the underlying index, takes the constituent stocks of the index as the investment object, builds a portfolio by purchasing all or part of the constituent stocks of the index, and tracks the performance of the underlying index.
Index funds have both on-site funds and off-site funds. OTC funds are purchased on sales platforms (Tian Tian Fund, Alipay, WeChat, banks and brokers). On-site funds need to open an on-site fund account to be traded (brokers open an account). Index funds are relatively less risky and have higher returns. Index funds buy constituent stocks in the index. Index funds follow a specific index and buy some or all of the stocks in the index in order to obtain the same income as the index.
How to buy index funds to make money, first of all, is to sell high and suck low, that is, to buy index funds at a low level and sell them at a high level, but it is difficult to grasp the trading opportunity; Secondly, it is long-term holding. Historically, holding funds for a long time is easier to gain income, and investors' investment level is not high, but we must pay attention to the investment cycle; The third is fixed investment, which is a better investment method. Fixed investment saves time and worry, takes average income, does not need timing, does not need stop loss, etc. , suitable for most investors.