In fact, the rates of index funds are different, such as management rate, sales service rate and custody rate. When buying a fund, you must see clearly what costs you need to bear. From the perspective of fund types, enhanced index funds have higher rates. Because the management rate of enhanced index funds is relatively high.

In addition, compared with bank channels and brokerage channels, I suggest you go to a third-party sales platform like Jinjiwo, because the subscription rate will be much cheaper. Especially for the base people who make a fixed investment, because each deduction is equivalent to subscription, it is necessary to actively choose index funds with low subscription rates, which can also save a lot of money in the long run.

Second, pay attention to the tracking error.

The so-called tracking error is the distance between the index fund performance and the tracked index performance, and it is an important indicator reflecting the management ability of index fund managers. It is suggested that you choose an index fund with daily tracking error within 0.2% or annual tracking error within 1.5%. Specific tracking error data, you can see the fund's variety page.

Third, pay attention to constituent stocks.

For many industry index funds and theme index funds, we should also pay attention to their constituent stocks. Take the pharmaceutical industry index fund as an example. Since the beginning of this year, the best performance has reached 32%, and the poor performance is only 19%. Due to the different constituent stocks, the performance varies greatly. It is suggested that when choosing industry index funds and theme index funds, we should pay more attention to the investment style and heavy position direction of the funds, and then make choices according to the overall market situation.

Fourth, pay attention to passivity or reinforcement.

Funds tracking the same index are often divided into passive and enhanced types. The passive type tries to completely copy the earnings of the index, while the enhanced type generally allocates 80% positions according to the index, and the remaining 20% positions are actively managed. Therefore, enhanced index funds often get higher returns, but they also have to bear higher risks.

From the historical data, general enhanced index funds lost to passive index funds in bull market, while enhanced index funds performed better in bear market. Judging from the current situation, although the performance of enhanced index funds is high or low, there are very few loss-making enhanced index funds.

It is suggested that enhanced index funds can be purchased to obtain higher returns, but they must be evaluated according to their historical performance, risk control, management ability of fund managers and so on.

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