How to buy industry index funds?
1, industry choice
If you want to invest in industry index funds to get excess returns, you need to make a good choice of industries and choose high-growth industries to get better returns.
Step 2 choose a fund
Performance is the first thing everyone will look at when buying a fund, but we choose the basis and the past performance can be referenced. We can't believe it all. Don't be confused by short-term performance. It is probably an element of luck, which is unsustainable. Long-term performance has certain reference value. In addition, turnover rate and retracement are also important. Funds with high turnover rate are not necessarily poor funds, but short-term transactions are frequent, and funds that chase up and kill down must have high turnover rate.
3. Choose an investment strategy
Method 1: periodic quota
Invest in Tian Tian Fund and set up automatic deduction for fixed investment, such as automatic deduction on the 20th of each month 100 yuan. This method is suitable for office workers with fixed income.
Method 2: There is no quota on a regular basis.
Make some flexible adjustments on the basis of method 1 For example, if you invest 100 yuan on the 20th of the first month and find that the fund you hold has gone up on the 20th of the second month, you should invest as appropriate.
Method 3: Buy on dips.
When the tracked fund falls to a certain point, buy it.
Precautions before investment:
1. First of all, you should see whether you are suitable for investing in such funds. It depends on your knowledge of an industry and whether your judgment is above average.
2. Industry index funds are highly volatile. First of all, you need to know the position agreed in the index fund contract. Index funds usually have 90-95% positions in contracts. If there are no special circumstances in the daily investment management process, fund managers tend to maintain their positions at around 95%. When the industry index goes down, index funds will also go down, and whether fund managers will lighten their positions because of the decline still needs everyone's attention. Therefore, such funds will fluctuate greatly. If you can't bear such fluctuations, it is recommended to choose a hybrid fund or a broad-based index.
3. Pay attention to the balanced allocation of index funds. It is suggested to adopt the core satellite strategy. Generally speaking, it is to divide the funds into two parts. Part of it accounts for a large proportion in the whole portfolio, which plays a decisive "escort" role in the security and income of the whole portfolio. The other part has a slightly smaller weight in the whole portfolio and is based on the core portfolio. However, just like a satellite roaming on the earth, under certain conditions, it can have a broader investment space and make investment more active, positive and flexible. It often has the opportunity to get amazing harvest, so it is called "satellite".
Summary: The above is the introduction of how to buy industry index funds, hoping to help you choose industry index funds.