First of all, we need to understand the basic concepts and characteristics of broad-based index funds. Broad-based index funds are passively managed funds. Their investment strategy is to track a certain market index (such as Shanghai Composite Index and Shanghai-Shenzhen 300 Index). ) and buy stocks according to the weight of stocks in the index. Broad-based index funds are favored by investors because of their simple investment strategy and low management cost.
Next, individual investors need to choose a reputable securities company, open a securities account and carry out real-name authentication. When opening a securities account, you need to pay attention to the selection of trading platform, understand the commission rate and be familiar with the trading process.
Then, individual investors need to buy broad-based index funds in securities accounts. Before buying, you need to choose a fund that suits your risk tolerance and investment needs, which requires research and comparison on the historical performance, fund scale and rate of the fund. In addition, we need to pay attention to the details of the fund's share and trading time.
Finally, individual investors need to pay regular attention to the performance of their broad-based index funds and make adjustments according to market conditions. At the same time, we should be vigilant and avoid listening to rumors or blindly following the trend, so as not to cause unnecessary risks.
In short, individual investors need to make full preparations and keep a cautious attitude to buy broad-based index funds in order to achieve the ideal investment effect.