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.

The investment operation of index funds is the process of tracking the index by buying the constituent stocks (or other securities) of the index, which mainly includes opening positions, reinvesting and tracking adjustment.

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system of selection

1, pay attention to the strength of fund companies-fund comes first

When choosing any fund, the strength of the fund company 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 fund fees-cost wins.

Compared with actively managed funds, one of the advantages of index funds is low cost, but different index funds have different degrees of "low cost", so it is very necessary to minimize the investment cost. 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.

3. Pay attention to the target indicators-the most important.

The core of index fund lies in the index it tracks, so it is particularly important to know the corresponding market when choosing index fund. In addition, investors can also achieve the purpose of asset allocation by investing in different index funds.