In a fund portfolio, index funds can be said to be an indispensable role, so how should we choose index funds in the fund portfolio?
1, classification of index funds
Index fund is a passive fund, whose purpose is to track the market index and obtain the average market income. There are also many kinds of index funds, which are divided into large index, medium index and large index according to market value, various industry indexes according to industry, such as consumer industry index, and various theme indexes according to market hotspots or policies. For novice investors, it is suggested to start with such basic combinations as CSI 300 and CSI 500. Choosing such an index is relatively easy to grasp the investment opportunities of the market as a whole.
2. Risk-return ratio
As the old saying goes, risk always comes first. Before you start investing, you must first confirm your risk tolerance. If you don't know much about your risk tolerance, you can make a risk assessment and get a general understanding of your actual situation. The choice of index funds is different with different risk tolerance.
If the risk tolerance is relatively small, you can mainly allocate blue-chip valuations such as the Shanghai and Shenzhen 300 Index in the stock index, and the allocation ratio of other indexes does not exceed 30%.
If you have strong risk tolerance, you can pay attention to the growth index with high volatility, such as the GEM index, or the Angye index fund with strong periodicity, such as brokerage, real estate and medical care.
3. Investment purpose
Another important thing in investing is to determine your own investment purpose. Investment is a long process. The younger you are, the longer the investment cycle in the mathematical sense. Determining a good investment goal can help us invest more orderly and stick to it. For example, if you are still young and want to save some money for retirement, then the investment process is relatively long. You can appropriately increase the broad-based index funds such as CSI 500 and the auxiliary consumer index funds with long-term investment value. If you are older, the investment cycle is relatively short, and you are mainly stable, you can pay attention to products such as bond index funds.
Step 4 do your best
Everyone's investment ability is different, and everyone has his own ability limit, that is, his own ability circle. When we invest, we should invest in our own ability circle. If it's an industry we don't know at all, try not to touch it. For example, the market is particularly good at a certain stage, but this industry is something we have never touched before, so try not to touch it. In the process of investing, learn to give up moderately, and you will get what you give up.