Fund index valuation can be bought, there is no fixed value. The valuation of blue-chip index is generally low, and the valuation of growth index is generally high. Generally, underestimation or overestimation is judged according to the percentile of the highest historical valuation corresponding to the relevant index.

An undervalued index does not necessarily rise, and an overvalued index does not necessarily fall. But from the risk point of view, the overestimated risk is definitely greater than the underestimated risk. In the long run, undervalued valuation is easier to return and has long-term investment value, but investors need to pay the time cost.