The main purpose of fund investment is not to obtain high expected returns. Of course, the performance of actively managed funds is more objective, but it is very unstable. Therefore, many investors will choose a more compromise plan, which is to invest in index funds. So what are the risks of investing in index funds?

1. What are the risks of investing in index funds?

1, safe

The security of index funds is still relatively good. General index funds change positions once or twice a year in order to eliminate bad stocks. The biggest risk of fixed investment of index funds lies in the risk assessment of investors. When investors buy products through third-party software such as Alipay, they generally require risk assessment, but the results of the assessment are not necessarily accurate, which may lead investors to choose products with inconsistent risk levels and risk tolerance.

2. Asset liquidity

The expected return of index funds fluctuates greatly, but if it is a long-term fixed investment, the probability of loss will be smaller. Therefore, it is best to use the funds for the fixed investment of index funds as idle money that has not been used for a long time, and to ensure that there are enough funds for daily expenses of families. If you purchase and redeem frequently, you will lose a lot of transaction costs.

Second, the index fund fixed investment skills

1, fixed investment operation time

The fixed investment of index funds is not sensitive to the operation time and has little effect on the expected return on investment. Investors don't have to worry too much about when to make a fixed investment, and they can arrange it according to their own financial situation.

2. Sales strategy

Fund investment should learn to quit, which generally includes two methods: target profit-taking and valuation profit-taking The so-called target value take profit method is to redeem after reaching the expected expected income. This method is less risky, but if the market is good, it is likely to lose part of the expected income. The valuation take profit method is based on data, but it is not so easy to quantify the data.

The above contents about the risk of fixed investment index funds, I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.