1. Market risk: the risk that the price of index funds will fall sharply due to the sharp decline of the stock market. This is a normal market behavior, which is a risk for ordinary investors and an opportunity for those who have mastered the investment skills of index funds. The main way to solve this risk is to buy at a good price and reduce the holding cost.

2. Liquidity risk: Due to the small scale, the daily turnover of index funds in the market is small, which leads to the risk that they cannot sell the funds smoothly when they want to sell them.

Indexed securities investment fund

Index funds, as the name implies, are fund products with specific indexes (such as Shanghai and Shenzhen 300 Index, S&P 500 Index, Nasdaq 100 Index, Nikkei 225 Index, etc.) as the target. ) as the underlying index, and take the constituent stocks of the index as the investment object, build a portfolio by buying all or part of the constituent stocks of the index, and track the performance of the underlying index.

How to choose index funds?

1. Pay attention to the strength of fund companies-fund first: When choosing any fund, the strength of fund companies should be the primary factor that investors pay attention to, and index funds are no exception. Although the index fund is a passive investment, the operation is relatively simple, but tracking the underlying index is also a complex process, which requires accurate calculation and rigorous operation process. Powerful fund companies can usually track the underlying index more closely.

2. Pay attention to the underlying index-the most important thing is that the core of an index fund lies in the index it tracks, so it is particularly important to know its corresponding market when choosing an index fund. In addition, investors can also achieve the purpose of asset allocation by investing in different index funds.

3. Pay attention to fund fees-cost wins: Compared with actively managed funds, one of the advantages of index funds is low fees, but the degree of "low" fees of different index funds is different, so it is very necessary to minimize investment costs. Of course, it should be noted that lower fees are important, but the premise is that the fund has good returns. Don't blindly choose index funds for lower fees.