To choose a good index fund, we must first choose the right index. It is very important to choose an index that suits you, such as SSE 50, CSI 100, CSI 300 and CSI 500. They cover a wide range of constituent stocks and are not limited to a certain industry. They are classified according to the company rankings. We call it broad-based index.

The broad-based index has a wide distribution range and a high degree of risk dispersion. To invest in Xiaobai, it is recommended to invest in broad-based index (broad-market index, Shanghai and Shenzhen 300, CSI 100 with low risk). Long-term only a few years, the probability of not losing money is extremely high.

Since there is a broad-based index, there must be a narrow-based index, which is an index fund that relies on a certain industry or a certain theme. This kind of risk is higher and more cyclical. Suitable for investing in industries that you are optimistic about and understand. For example, environmental protection index, consumption index, medical index and so on.

When investing in industry indexes, you can pay attention to the low valuation index through the price-earnings ratio, because the low valuation index is not enthusiastic to investors, and everyone likes to get together with the high valuation index. When the space of high valuation index is getting smaller and smaller, investors will turn to low valuation index. If you are optimistic about the prospects of an industry, and it is a cyclical industry, it is also a good choice to choose a friend with a low valuation index as a long-term friend.

The second is to choose a fund. Regarding the choice of funds, we all know that we should choose according to the historical performance ranking method. Because index funds are passive, the ability of fund managers can be reduced. Then there is the choice of fund company size and fund size. Index funds are directly affected by the index, so we should have a clear understanding of the future market, don't expect to get rich overnight, and accumulate compound interest by long-term holding.

You think the market is still hitting 3400 points, even if it continues to decline, I feel that 3000 points doesn't matter. Now that the national strength is so good, the index will definitely go up eventually. What you need to care about is how much you sell and keep the profits in your pocket. There is also the choice of low valuation industry index, and the ranking is definitely not good. When choosing, we should pay attention to the industry prospects and the financial diagnosis of some platforms.