First, choose high-quality fund targets.
When investing in index funds, it is very important to choose an index fund with excellent performance and long-term basic orientation. Try to choose index funds with small tracking error, long establishment time, mature operation, moderate fund size and low rate. There are many types of indexes in the market, such as broad-based index, industry index and so on.
The broad-based index fluctuates relatively smoothly, which is suitable for small white investors who are not sensitive to market conditions. There are industry indexes with strong periodicity and large fluctuation, which are more suitable for professional investors who have certain judgment on market conditions and strong risk tolerance. Of course, you can also reasonably match the two.
Second, make appropriate timing investment.
Index funds are different from other partial stock funds. We can choose to buy when the valuation is low and sell when the valuation is high according to the market situation.
You can refer to the commonly used valuation index price-earnings ratio. Generally speaking, the lower the P/E ratio, the easier it is to underestimate the index and the higher the future growth. The historical percentile of valuation can be used to judge the position of the highest percentage of P/E ratio. Timing index funds through valuation will generally have a good effect of improving returns.
Third, smart fixed investment
The most commonly used investment method of index funds is fixed investment, and most people are ordinary fixed investment. In fact, we can invest in index funds through smart fixed investment. The deduction amount of ordinary fixed investment deduction cycle is very fixed. Intelligent fixed investment is to increase the investment share at a relatively low level and reduce the fixed investment share at a higher level. In the long run, the income effect will be better than that of ordinary fixed investment.