There are many index funds in the market. If you don't understand index funds, you may feel that you can't start. In fact, choosing an index fund is not that difficult. We can consider it from several angles, just like buying clothes, we can definitely choose an index fund that suits us.

1. Choose according to risk preference.

Choose a fund according to your risk tolerance. Index funds also have different classifications, such as low-risk bond index funds, medium-risk comprehensive index funds, scale index funds, medium-high risk stock index funds, industry index funds, style index funds, high-risk graded index funds and so on. Some people hope to get higher returns and are not afraid of risks. B-level graded funds are for this kind of people.

2. Choose according to the trading period.

Index funds with different investment periods are also different. If it is a long-term investment, you can choose scale index or comprehensive index such as CSI 300 and CSI 100 index. This index fund has a wide coverage and can help to obtain the long-term average return of the market. If you have certain timing ability and have certain research on markets and sectors, I hope you can sell high and suck low to get higher returns. You can choose style index fund and theme index.

3, according to the fund company to choose

For the same type of index, many fund companies often have corresponding index funds, and the management ability, tracking error and management cost of fund companies will affect our income. Therefore, it is necessary to comprehensively consider the importance and historical performance of the index by different companies. When choosing index funds on major fund trading software, you can often see the general situation of fund companies, the number of funds managed and how their performance is. After the comparison, you will naturally have a choice.