Index funds completely simulate the index weight of their positions, representing not a single stock but a basket of stocks. A reporter once asked Buffett how to invest. Buffett directly put forward the investment index fund. "I will invest all my money in an index fund that tracks the S&P 500 index at a low cost, and then continue to work hard."

Generally speaking, there are many index funds in A shares, such as SSE 50, CSI 300 Index, SSE 180 and SZSE 100 Index, CSI 100 and SME Board Index, CSI 500 Index and so on.

So which funds are worth investing in at present?

1, Shanghai and Shenzhen 300 Index

Compiled by Shanghai Stock Exchange and Shenzhen Stock Exchange, 300 A-shares in the two stock markets that can reflect the overall trend of A-share market are selected as samples. This index contains about 60% of the market value of Shanghai and Shenzhen stock markets, and has gathered 300 representative, large-scale and liquid large-cap companies. Generally speaking, this index basically averages the income of the entire Shanghai Composite Index. If you hold the fund for a long time, you basically hold the Shanghai Composite Index for a long time. It is worth noting that this fund is extremely safe, because the time axis is lengthened and the entire Shanghai Composite Index is rising. It is conservatively estimated that if you hold shares patiently, you can basically outperform all kinds of bank financing in one year.

2. SSE 50

SSE 50 consists of 50 Shanghai and Shenzhen A-share stocks with high cash dividend yield, stable dividends and certain scale and liquidity. The market value is used as the basis for weight distribution, reflecting the overall performance of blue-chip stocks in the A-share market. All the stocks in the SSE 50 Index have excellent dividend yield, and only excellent enterprises will have high dividends, so the index composed of stocks of excellent enterprises is trustworthy.

3. CSI 500

The CSI 500 Index consists of the top 500 stocks and the top 300 stocks with total market value excluding the constituent stocks of the CSI 300 Index, which comprehensively reflects the stock price performance of many small and medium-sized companies in China A-share market. In the past few years, the yield of CSI 500 has performed well, but in recent years, due to the changes of SSE 50 and the overall capital preference, the performance of CSI 500 is extremely weak, but it has gradually bottomed out.

Generally speaking, in fact, we can also make a combination of CSI 300, CSI 500 and SSE 50, and make a combination of 28 rounds according to the market, that is, adjust positions between these two funds according to certain conditions. If you insist on investing for a long time, the return on investment of the portfolio is still very good.