When investing in index funds, whether it is a fixed investment or a one-time purchase, we should consider whether this index fund is worth buying. Among them, the most important thing is to judge the relationship between price and value, and buying when the price is lower than the value is the correct "posture" of investment. How to know whether the price of an index fund is lower than its value can be judged by some valuation methods commonly used in the market, such as price-earnings ratio (PE), price-to-book ratio (PB), dividend yield and return on net assets (ROE).

Related to the market, the China stock market is short and long, and the position of passive index funds normally exceeds 95%, which definitely does not take any advantage in the decline, and the enhanced funds with more flexible positions can escape;

In the enhanced index fund, the fund manager has relative initiative. After holding a certain proportion of index bottom positions, the remaining positions can play a greater potential, such as the Smart Beta strategy, which is very popular in the market now, to obtain excess returns. If students want to allocate CSI 500 index funds and enhanced index funds, it is very important to change fund managers. I checked the changes of fund managers of two funds, and found that they have not changed since 20 14, which is very stable and trouble-free and worth having. To sum up, there is a saying in the stock market: "The market always comes into being in despair, rises in hesitation and dies in madness". At present, the valuation of broad-based index is at a historical low level, which may be a good starting point, especially for students who have voted for the fund. Don't give up at this moment, accumulate more chips in the low position, wait for the arrival of the smile curve, and get rich returns.