In the market, many investors often don't know how to choose a wide variety of index fund products. In view of this situation, let's talk about what indicators to look at when screening index funds.

What indicators do index fund screening need to look at?

Screening index funds can be based on the following indicators:

1 Look at the scale. The scale of fund products directly reflects the degree of market recognition of fund products, but it does not mean that the bigger the fund, the better. After all, the bigger the fund, the more people will pay dividends, and the profitability will decline. If the scale of the fund is too small, the error will increase, and if it is not well managed, it is likely to be liquidated.

2 Look at the rating of fund products. The fund rating is scientifically and quantitatively analyzed by professional fund rating agencies to help investors make reference to the returns and risks of fund products. And the fund rating is generally divided into five grades, from 1 to 5 grades, which investors can find on professional websites.

3 Look at the performance of fund products. When screening index fund products, we should not only look at the short-term performance of fund products, but also pay attention to the long-term performance level of fund products. If the long-term performance level of a fund product is good, but the recent performance is not good, it does not mean that it is a poor fund. On the other hand, if a fund product has a poor performance for a long time, but it has risen recently, it does not mean that it is a good fund.

4 Look at fund companies and fund managers. Generally, newly issued fund products are not recommended for novice investors because there is no historical data reference. If you really want to buy fund products, it is recommended to pay more attention to the strength and operating conditions of fund companies and the historical performance of fund managers. Choosing a regular fund company with a certain scale and giving priority to fund managers is the prerequisite for the profitability of fund products.

5 look at the fund handling fee. The expenses of fund products mainly include transaction expenses and operating expenses. Among them, transaction expenses refer to subscription and redemption expenses, and operating expenses refer to management fees, investment management fees and sales expenses. When investors buy index funds, they must pay attention to the cost and avoid being eroded by some income.

Of course, in addition to the above indicators, there are also some financial indicators that investors need to pay attention to, such as P/E ratio, P/B ratio and dividend yield.