To buy an index fund, you should pay attention to the following matters:
1. Pay attention to the difference in the rate, which is related to the investment cost. The less the general rate, the lower the cost for investors to buy it themselves. Generally, the cost of Class A is higher than that of Class C, but the cost of Class A is lower than that of Class C after holding it for more than one year.
2. Pay attention to the tracking error. Stay away from the target with large tracking error. The tracking error is how much the index has risen and whether the fund has also risen, which reflects the management ability of the fund manager. It is best to choose a fund with a daily error of .2% and an annual tracking error of 1.5%.
3. Pay attention to the constituent stocks invested by the fund and the constituent stocks invested by the index foundation. If the trend of constituent stocks is quite different from that of the index, it may make a lot of profits in good cases and may lose a lot in bad cases. At this time, it depends on whether the trend of the awkward stocks is consistent with the index.
4. It should be noted that index funds can help both rise and fall, that is, when the market rises, index funds may also rise sharply, and index funds may also fall sharply. At this time, it is necessary to combine the past performance of fund managers and other references.
5. It should be noted that in a volatile market, index funds don't have to be held for a long time. Investors can do band operation, especially for indexes that fluctuate sideways. If they don't do band operation, their accounts may hardly change in the end.
6. It should be noted that investment index funds can also diversify their investments, and the number of investments should not exceed five.
The above are the matters that index funds need to pay attention to. Index funds include: index funds, enhanced index funds and ETF funds. Investors should also choose according to their risk tolerance when purchasing. Some index funds are enhanced index funds, and their risks will be greater than ordinary index funds, so they should do what they can.