The typical feature of novice investors is the blank of investment experience and professional knowledge, and they don't know what to buy. How to buy? how much is it? Therefore, if you are giving advice to novice investors, try to choose from those financial products that are stable and require professional ability. Among many wealth management products, index fund is a very good choice.

Why do we advocate novice investors or financial managers to start investing in index funds first? Mainly because of several characteristics of index funds.

Achieve the purpose of diversifying investment.

Diversification of investment can effectively help us reduce investment risks. Index funds have a very good effect of diversification. For example, the Shanghai and Shenzhen 300 and CSI 500 indexes cover high-quality enterprises in various industries.

The part that weakens people's subjective judgment

Investment sentiment may be the biggest stumbling block on a person's investment road. Index fund is a completely simulated index form. How the index changes, the fund will change, and there is no need for the fund manager to actively control the strategy.

The dependence on fund managers is weak.

Judging whether a fund manager is excellent or not also requires a certain professional level and unique vision. Paying little attention to fund managers is another difficulty for fledgling investors.

The management cost is relatively low.

The management fee of most index funds in China is generally around 0.5%, while that of common stock funds is 1.5%.

The index fund market is very rich and selective. If you pay more attention to the Shanghai market, you can choose SSE 50 or 180 index; If you pay more attention to Shenzhen stock market, you can choose Shenzhen Stock Exchange 100 index; If you pay attention to the whole China market, you can choose the Shanghai and Shenzhen 300 Index.

Regarding the choice of fund companies, it is suggested that priority should be given to the top big companies.