First of all, we must understand what an index is. Index refers to the overall level of the stock market and its changes. For example, the Shanghai and Shenzhen 300 Index represents the level and changes of the Shanghai and Shenzhen stock markets. If the Shanghai and Shenzhen 300 index is rising, it means that the overall market of Shanghai and Shenzhen stock markets is rising. When the index fund you buy falls, it means that the overall market of the index is falling.
What targets do index funds use to track the index?
The answer is stocks. Take the Shanghai and Shenzhen 300 as an example. The sample number in the Shanghai and Shenzhen 300 Index is 300 stocks, so the Shanghai and Shenzhen 300 Index Fund tracks the index by buying these 300 stocks. If the overall market in Shanghai and Shenzhen is good, the Shanghai and Shenzhen 300 index fund will rise, and if the overall market falls, the fund will fall, which is closely related to the Shanghai and Shenzhen 300 index. Therefore, index funds have little human intervention (not affected by the level of fund managers), and they follow the market and are blocked by national luck.
Recently, it is actually a good time to open a position. Buy low and sell high. With the same funds, you can buy more stocks at a low level and the cost is lower.
Because the subject bought a shock index fund, a fixed investment would be better than a one-time investment. After all, it is difficult for us to predict whether it is the lowest now ~!
So if you have some spare money, you can use it to open a position if you are not in a hurry for a long time to come.
If money is tight, just wait patiently!
In addition, list the steps and methods of selecting funds for the project:
1. First, choose the appropriate type by category: if it is a fixed investment, choose index funds and mixed funds with relatively large fluctuations.
If it is a one-time investment, choose a pure debt fund without convertible bonds in the bond fund.
Important reminder: because you don't know what index fund you are buying, you should pay attention to the difference between the comprehensive index and the industry index:
The comprehensive index fund covers all walks of life, and the risk concentration is relatively low. The influencing factors of industry index funds are relatively single and the risks are concentrated.
Therefore, compared with industry index funds, comprehensive index funds are recommended. Of course, if you must choose industry index funds, choose those industries that are less affected by the economy.
2. It is best to operate for more than 3 years. If it is not open regularly, it can be redeemed at any time.
3. Look at the performance of the fund, and choose the one that has grown steadily in the past year, and the income is better.
4. Look at the fund manager: the maximum withdrawal rate (used to describe the biggest loss that investors may face, the debt base is within 10%, and the stock base is within 45%. Because index funds follow the index, this withdrawal rate does not need to be referenced), and the frequency of replacement (do not change frequently).
Buffett has repeatedly advised investors: "Be sure to invest within your own understanding.
Sharpening a knife is not a mistake for a woodcutter. It's best to learn financial management knowledge before investing, and then invest clearly.