Choose the index fund that you want to invest in. Many people will choose the fund from the undervalued index through index valuation. Of course, it is an important step to choose to underestimate the index, but another step is also crucial, that is, it depends on the size of the fund. How to choose index funds? Look at the size of the fund.

How to choose index funds?

Be careful not to choose too small a fund. If the index fund is only a few million, the risk of liquidation will be even greater. Although the liquidation does not mean that the investment will be wasted, the institution will redeem the investment funds according to the net value of the fund on a certain day and return the investment funds to the investors. This process is very troublesome and is likely to cause losses.

Choosing a larger fund has more advantages in income, and fixed fees have little effect on its income. There is another advantage. Under the new rules of refinancing business, index funds can participate in refinancing business and increase part of their income. The new regulations have just been implemented, and index funds are the main income varieties, but only funds with a fund size of more than 200 million can participate in this business.

In view of these considerations, when choosing index funds at ordinary times, it is suggested to try to choose a fund with a scale of not less than 200 million, which on the one hand reduces the trouble of liquidation and on the other hand facilitates the enjoyment of the increased income under the new policy.