What are the index funds you are asking? There are two types of funds: open-end funds and closed-end funds. Open-end funds can be purchased directly on the website of the fund company (online banking is required) or through various banks. Closed-end funds must open stock accounts and buy them like buying and selling stocks.
There are several types of open-end funds: currency type, bond type, capital preservation type and stock type. There is no redemption fee for monetary funds, and the income is equivalent to six-month to one-year deposits, which can be redeemed at any time without losing money. The subscription and redemption fees of bond funds are relatively low, and the income is generally greater than that of monetary funds, but there is also the risk of loss, and the loss will not be great. Stock-based funds have the highest subscription and redemption fees, and the fund assets are stocks. When the stock market falls, the fund will have the risk of losing money, but if the stock market rises, there will be gains. Through long-term investment, the average annual return of stock funds is about 18%~2%, and the average annual return of bond funds is 7%~1%.
The fixed-term investment of the fund is similar to long-term savings, which can spread the investment cost evenly and reduce the overall risk. It has the function of automatically increasing the price on dips and decreasing the price on dips, and can always get a relatively low average cost no matter how the market price changes. Therefore, regular fixed investment can smooth out the peaks and valleys of the fund's net value and eliminate market volatility. As long as the selected funds have overall growth, investors will get a relatively average income, and they don't have to worry about the timing of entering the market.
funds are the best choice for pursuing long-term returns. If it is a fixed investment, it can also smooth out the loss of income caused by short-term fluctuations. Since it is the pursuit of long-term income, you can choose the variety with the highest target income, the index fund. Index funds have already optimized the target, and the blue-chip stocks and high-quality stocks in the industry, which are representative of the model, have avoided the risk of individual stocks because of a certain number of models. And avoid the impact of the economic cycle on a single industry. Because it is a long-term fixed investment, it takes time to digest the inevitable high-risk characteristics of high-yield varieties.
it is recommended to choose the products of high-quality fund companies. For example, Huaxia, Yifangda, South China, etc., it is suggested that the Shanghai and Shenzhen 3 and the small-cap index be selected. You can open a fund account through a securities company, so that professional investment managers can serve you. Some index funds are free of handling fees through securities companies, which will further reduce your investment cost.