First, choose the index that suits you, such as Shanghai and Shenzhen 300 Index, Growth Enterprise Market Index, Science and Technology Innovation Board 50 Index, Shanghai Stock Exchange 50 Index, CSI 1000 Index, etc. The investment target of index fund corresponds to the expected annualized rate of return of index, and investment index fund is the investment index. Relatively speaking, the more industries covered by the index, the smaller the fluctuation range of the index fund, and the greater the restriction on the rate of return.

Second, look at the strength of fund companies, especially the scale of index funds. The scale of index funds should not be too small or too big, and the scale of 200 million to 5 billion is relatively suitable! When choosing any fund, the strength of the fund company should be the primary factor that investors pay attention to, and index funds are no exception. Large fund companies have strong investment and research strength, and will be more flexible and timely in the allocation of related index stocks, thus gaining more benefits in the securities market!

Third, look at the tracking error of the index. There is a tracking error between index fund and the trend change of index. The smaller the error, the better!