Many novice investors always ask, why should we look at the Shanghai Composite Index when buying funds? The main reason is because the trend of the Shanghai Composite Index can reflect the conditions of the entire stock market. Under normal circumstances, when the Shanghai Composite Index falls, the stock market conditions will also generally be bad.

, the Shanghai Composite Index rises, and the stock market conditions will be better.

Many people will say that I am buying funds, not stock trading, so why should I pay attention to the trend of the Shanghai Composite Index? Do you need to pay attention to the Shanghai Composite Index when buying a fund? When buying a fund, you must pay attention to the Shanghai Composite Index. This is because of the important position of the Shanghai Composite Index in the Chinese stock market.

.

From an analysis point of view, there are at least the following three points that determine the need to pay attention to the Shanghai Composite Index when buying funds: 1. The Shanghai Composite Index represents the trend of China’s A-shares. The stock market is a barometer of the economy. The Shanghai Composite Index (Shanghai Securities Composite Index, also known as the Shanghai Composite Index)

The trend of the index) is the "barometer" of China's A-shares.

If the Shanghai Composite Index strengthens, the Chinese stock market will strengthen.

If the Shanghai Composite Index weakens, the Chinese stock market will also weaken.

Therefore, when buying funds and looking at the Shanghai Composite Index, you will also understand the current market conditions.

For example, when the Shanghai Composite Index is at a low level, it is relatively safe to buy funds at this time, and the probability of making money is high.

On the contrary, if the Shanghai Composite Index has gone very high, then the risk of buying the fund will increase.

2. Many index funds are compiled based on the Shanghai Stock Exchange Index. Index funds are a large family of fund products, and many people are buying index funds.

Many index funds are compiled based on the SSE Index or the constituent stocks of the SSE Index, such as the SSE 50 Index Fund, the SSE 180 Index Fund, etc.

If you understand and grasp the trend of the Shanghai Composite Index, you will also grasp the corresponding trend of index funds.

Therefore, when buying index funds, you should especially look at the trend of the Shanghai Composite Index.

3. Looking at the Shanghai Composite Index can detect the change in the style of the stock market, thereby determining the fund investment strategy. The style of the stock market is in a state of frequent rotation.

For example, the Shanghai Composite Index will be strong for a period of time, the SME Index will be strong for a period of time, and the GEM Index will be strong for another period of time.

Checking the trend of the Shanghai Composite Index in a timely manner is to detect the transformation of the stock market style, so that you can make decisions for fund investment accordingly.

For example, when the Shanghai Composite Index strengthens and the Small and Medium Enterprises Board Index weakens, then funds related to the Shanghai Composite Index can be increased and funds related to the Small and Medium Enterprises Board Index can be reduced.

On the contrary, when the Shanghai Composite Index weakens and the Small and Medium-sized Board Index strengthens, it is possible to reduce positions in funds related to the Shanghai Composite Index and increase the purchase of funds related to the Small and Medium-sized Board Index.