The index of fund target refers to the specific market index tracked by the fund and is an important reference standard for fund investment. When buying a fund, investors need to know the underlying index of the fund in order to better measure the investment performance of the fund. Generally speaking, the underlying index includes stock index, bond index, commodity futures index and other types, and the type of fund determines the underlying index it tracks.

The underlying index of the fund can reflect the overall performance of the market, so it becomes an important reference index for fund managers to choose investment targets. When the market fluctuates greatly, the underlying index of the fund can directly reflect the fluctuation of the fund, and investors can better evaluate whether to invest in a fund by observing the underlying index of the fund.

How to choose the index that suits you?

When choosing a fund, investors need to combine their own risk preferences, investment objectives and other factors to choose the index that suits them. Generally speaking, growth stock funds are suitable for investors with high risk and long investment period; Value stock funds are suitable for investors with moderate risk preference and hope to realize value investment; Bond funds are suitable for investors with low risk appetite, stable income and short-term investment. In addition, it is necessary to evaluate the investment ability and management level of fund managers and choose excellent funds to better realize long-term investment income.