Growth enterprise market is the second stock exchange market, also known as the second board market, which provides financing channels and growth space for entrepreneurial enterprises, small and medium-sized enterprises and high-tech enterprises that need financing and development. It is a supplement to the main board market. Like other index funds, GEM index funds are also investment indexes, except that GEM funds mainly invest in GEM. Compared with the main board market, the listing requirements of GEM are more relaxed, there are more small entrepreneurial companies with short establishment time and small scale, and the investment risk is much higher, but the development potential and growth space of GEM are also greater.

As we all know, the biggest advantage of the fund's fixed investment is that it can share the investment cost and spread the investment risk. The fixed investment of GEM index fund is to buy a fixed amount of GEM index fund on a regular basis. When the fund's net value goes down, the buying share increases, and when the fund's net value goes up, the buying share is relatively small, so the investment method of overweight on dips and reducing financing on rallies is automatically formed. Moreover, the fixed investment tracks the GEM index, and the influence of human factors in operation is very small. As long as China's economy develops well for a long time, it will be profitable to settle down for a long time.

But be careful not to choose funds that can't completely track the market index. If the fund only chooses an ETF composed of a few or dozens of stocks on the GEM, it cannot be regarded as an index fund in a strict sense. In addition, the graded fund is not an index fund that completely tracks the GEM index. Moreover, graded funds fluctuate greatly, so it is not recommended to choose graded funds for investors who cannot bear higher risks. In particular, the graded B fund has suffered huge losses in the face of the continuous market crash.

How to judge whether a GEM index fund is worth investing?

1. Fund size and establishment time

First of all, it depends on the establishment time of the fund, and try to choose a fund with an earlier establishment time. Those established early can also compare the historical performance of the fund and choose the fund with outstanding performance. That depends on the size of the fund. Generally speaking, the bigger the GEM index fund, the better. Therefore, among other funds with the same conditions, the GEM index fund with large scale and early establishment is the first choice.

2. Select fund companies and fund managers.

Choosing a fund is choosing a fund manager. It is very important to choose good fund companies and excellent fund managers. We can compare the past performance of fund managers, and excellent and stable past performance can be used as the comparison standard of fund managers.

3. Choose a fund with excellent risk control ability.

Under the same estimated income, the smaller the maximum decline, the lower the risk of the fund. Therefore, choosing a fund with a relatively low maximum withdrawal amount has a lower risk.