From a security point of view, investing in index funds with low valuation is a big bargain. When index funds return to normal valuation, the bargains held by investors become valuable and naturally earn them. However, low-valued index funds only represent cheapness, not necessarily making money. Because underestimation doesn't necessarily rise immediately, you need enough patience.

Buffett once said: Benjamin Graham once taught me to buy only cheap stocks, and Charlie made me change this practice. Therefore, Buffett said that buying stocks must buy a good company. This sentence also applies to index funds, so you must buy a good index.

In order to track the markets of various sectors and industries, index companies have developed thousands of indexes, and not every index is of high quality. For example, the energy index has been underestimated in the past few years, but ordinary investors have no concept of energy, and investing in energy index funds is likely to end in losses.

Good indicators are the same as excellent enterprises. The price is not far from the value, and the probability of being underestimated is very low. Even under some special circumstances, it will not last long. For example, the Shanghai Stock Exchange 50 and the consumer index, in the past period of time, fell very sharply, reaching an undervalued region, but soon returned to normal valuation.

In the long run, choose a good index first. If you are in a low valuation now, you need to wait patiently enough until you return to a reasonable range. Although this process is difficult, you will get a good return after you get through it.

Although index funds are considered as lazy investment tools, investment index funds should have their own judgment and find index funds suitable for their investment. Here we suggest you: invest in index, try to invest in broad-based index and choose enhanced index fund.