You can't buy directly when the index is undervalued. Generally speaking, the situation is more complicated. Many times, this low-valued sector may not be suitable for our investment. For example, the banking sector scenario is in a low valuation situation, but its growth attributes and future development prospects are very poor. After such a year or two, the banking sector is still in a low valuation situation. The banking sector is just not suitable for us to buy at present. So it doesn't mean that it is undervalued and it must be suitable for us to buy. In fact, it depends on the fact that this index is undervalued. If it is a very popular sector and there is a market, when it is undervalued, then you can buy in large quantities, so that you can share the cost of buying. Just under normal circumstances, when the index is undervalued, don't buy it directly. Think twice before buying stocks or funds. Underestimation has the advantages of underestimation, and overestimation has the advantages of overestimation. Not all undervalued stocks and funds are suitable for purchase, and not all overvalued stocks and funds have no room for growth. Both are actually determined by market conditions.

The market is good, which is a very good time for those hot sectors. However, if it is not the turn of those sectors with low index, it is meaningless to continue investing in those sectors with low index. We need to follow this direction of the market and market conditions, rather than seeing whether the indexes of stocks and funds are overvalued or undervalued. The market situation determines everything. When the market is bad, everyone's plate is basically bad. When the market situation is good, it is necessary to start the layout in advance.

So when the index is undervalued, you can't buy it directly. Think about the future development potential of this index before buying. If it does have upward demand, it can buy, but if it does not have such upward demand, then it has no meaning of growth and will not get much income.