Index funds are an indispensable part of the fund market and are naturally favored by many investors. But if you want to make money, you still have to master some skills, otherwise you will probably lose your principal. The following is a collection of Bian Xiao 20021on how to buy index funds to make more money and how to invest index funds correctly. I hope I can help you.
How to buy index funds to earn more money
1, high throw and low suction. Index funds buy at a low level, sell at a high level, and sell at a high level, which is suitable for investors with a certain investment level, because the trading timing is difficult to grasp. Investors can increase the amount of fixed investment when the index fund is at a low valuation, and reduce the amount of fixed investment or even not when the index fund enters a high valuation.
2. Long-term holding. Historically, the long-term holding of funds is more likely to gain income, and the investment level of investors is not high, but we must pay attention to the investment cycle. Little friends can set a profit point in advance, and after a certain amount of fixed investment, they can redeem at the profit point and make the next investment.
How to invest in index funds correctly
First look at historical performance. If an index fund has been ranked lower among similar funds in both short-term and medium-term performance, such as the last month and three years, investors should consider whether to choose to sell. The comparison of fund income needs to be compared with the same type of funds at the same time, and it is meaningful, and it should be compared equally.
Second, look at the index corresponding to the future growth of the industry. For large consumption, medical index and other funds, the long-term market is rising, and there is no need to worry about the callback in a short time. After all, the price will eventually return to value. As long as the future prospects of the industry are good, it can be said that falling to a reasonable valuation range is a very good investment opportunity.
Do index funds need timing?
Choosing a one-time investment index fund needs the right time to buy when the index is undervalued and sell when the index is overvalued. If you confirm that you are very sensitive to market changes, you can buy low and sell high, you can try, and you can choose the right time. One-time investment can be said to be the most profitable index investment method.
If you don't do a good job in timing the index, then the fixed investment of the index fund is more suitable for you. Index fund saves time and effort and spreads risks, especially for investors who want to save regularly and have long-term investment goals, which may be the most appropriate way and will have relatively good returns in the long run.
What should I look at when buying an index fund?
First, tracking error. The tracking error of index fund is the distance between the performance of index fund and the performance of tracked index, and the tracking error is the embodiment of fund manager's management ability. The annual tracking error of index funds is preferably within 1.5%. Generally, the smaller the long-term tracking error, the more potential it is to be called a high-quality index fund.
Second, the size of the fund. For ordinary passive index funds, the larger the fund scale, the less the transaction cost, and the more funds can be used to track the index. Therefore, when buying an ordinary index fund, the bigger the fund, the better. Index-enhanced funds, the larger the fund size, the higher the requirements for fund managers, and the appropriate fund size is the best.
How much can a fixed investment index fund earn?
For example, since the age of 25, Xiao Li has made a fixed investment of 3,000 yuan per month, with an investment of * * * 1.26 million. If the annualized income is 10%, he will get 1.48 million by the age of 60. The annualized return of 10% is a long-term average, rather than reaching 10% every year. The return in a bad year of the stock market may be negative, so the premise for index funds to determine annualized return 10% is to maintain the continuity of time.
Note: Index funds track the index. When the market is poor, the income of index funds is negative, and the account loss is normal. Theoretically speaking, index funds exist forever, because the index exists for a long time, and it rises for a long time by eliminating unqualified targets and incorporating new qualified targets according to market changes. Holding such investment varieties is equivalent to capital preservation investment.
202 1 how index funds buy more money related articles:
★202 1 What should I look at in the stock market?
★ Introduction to the Operation Guide for Fixed Investment of Funds
★ How to make the fund turn losses into profits through fixed investment? 202 1
★ Introduction to Xiaobai Fund
★202 1 opening and closing time of the fund?