First, the selection method
First, choose the index, which is the index that investors want to invest in. For investors who want to make long-term investment through indexes, they can choose regular fixed investment or mainstream index funds with strong representation;
Second, looking at the rate, generally speaking, the rate level of ETF and index l of is low;
Third, look at exponential fitting;
Fourth, look at transaction costs and convenience.
Second, the index fund purchase method
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.
Third, the advantages of index funds.
1, human factors have little influence.
2. This ratio is very low. The subscription and redemption rate of general stock funds is 1- 1.5%, and that of index funds is 0.5- 1.2%.
3, passive tracking index personal finance calculator, very intuitive. It is also suitable for short-wave band operation.
4. Long-term investment has low risk and excellent return.
Fourth, the shortcomings of index funds.
1, the fluctuation is too large. For short-term operation, the risk is great.
2. lead the rise but not resist the decline. In any market, the position of index funds is very high, and it is impossible to avoid the risk of the stock market through the operation of fund managers.
3. The risk of fund redemption. If you want to quit early, you have to sell at a low level, which is easy to lose money.
4. The fixed investment of the fund is not applicable in all cases, and the effect is very different.