When will the index fund be bought? What is an index fund? I believe this is the first question for most people. Although I bought a fund, I may still have a little knowledge of the fund market. Therefore, Bian Xiao specially arranged when to buy index funds, hoping to help everyone.

When will the index fund be bought?

Index fund is to choose an index as the investment target, and the stocks in the fund pool are the constituent stocks of this index.

In this way, the yield of index funds is roughly the same as that of the tracked index.

For example, everyone will understand.

For example, the Shanghai and Shenzhen 300 Index consists of 300 stocks in the Shanghai and Shenzhen stock markets.

The Shanghai and Shenzhen 300 Index Funds also invest in these 300 stocks.

The index is the stock selection rule of the corresponding index fund, without the interference of human factors. That is, a relatively pure situation.

Therefore, index funds are also called passive funds.

Do index funds buy in bear market or bull market?

Whether investing in stocks or funds, the ideal state is to buy at the lowest point of the bear market or at the beginning of the bull market, buy low and sell high. But investment will not be so simple, because no one can predict whether the market will go up or down tomorrow.

How long does it take from bear market to bull market?

There is no fixed time standard from bear market to bull market. Historically, there will be a bull market in about five years (depending on market conditions). Bear market is also called short market. During a bear market, stock prices tend to fall for a long time. During the bear market, there will be a general decline, a yin decline or a big drop and a small increase, with poor profit effect and low market enthusiasm and participation.

Bull market is also called bull market. During the bull market, the stock price maintained a long-term upward trend. During the bull market, stocks generally rise or fall slightly, with good profit effect and high market enthusiasm and participation.

Bear market buys funds and bull market sells funds, right?

1. From the perspective of cyclical investment, it is right to buy funds in a bear market and sell funds in a bull market. The fixed investment of index funds is a process of buying the index regularly and quantitatively, waiting for the periodic return brought by the periodic fluctuation of the index, and diluting the cost in the middle. This is also the general method of fixed investment. It starts investing when the index is low and then sells when the cycle is high. The intermediate process is ignored, and fixed investment is made regularly and quantitatively.

2. The more extreme situation is that when the bull market is crazy, it will freeze at a high level, and it will plummet before it can dilute the cost, and the bull will turn to bear. At this time, the fixed investment of the fund will enter a longer period, and the time for diluting the cost will be lengthened. It takes 3-5 years to make a long-term fixed investment, waiting for an opportunity to turn a bear into a cow and get a phased return.