1. High throw and low suction.
Index funds buy at a low level, sell at a high level, and sell at a high level, which is suitable for investors with a certain investment level, because the trading timing is difficult to grasp. Investors can increase the amount of fixed investment when the index fund is at a low valuation, and reduce the amount of fixed investment or even not when the index fund enters a high valuation.
2. Long-term holding.
Index fund is a fund product that takes a specific index as the target index, takes the constituent stocks of the index as the investment object, builds a portfolio by purchasing all or part of the constituent stocks of the index, and tracks the performance of the target index.
Extended data
There are more and more index funds in the market, and it is more and more difficult to choose index funds. Investors should pay more attention to two points when choosing index funds: on the one hand, finding such an index is as difficult as choosing stocks; On the other hand, choose index funds with smaller investment tracking errors. The smaller the tracking error of funds, the stronger the management ability of fund managers, and the more investors can achieve the goal of obtaining index returns.
According to the data of Galaxy Securities Fund Research Center, by the end of April 20 12, there were 133 standard index funds and 24 enhanced index funds in the domestic fund market, which was unprecedented in scale.
At present, there are many kinds of indexes in the domestic market, which can be described as "a hundred flowers blossom and a hundred schools of thought contend". Different indexes cover different markets and have different risk-return characteristics, such as Shanghai Stock Exchange 180 and Shenzhen Stock Exchange 100 index, which reflect the situation of Shanghai and Shenzhen stock markets respectively. CSI 100 and SME index reflect the situation of blue-chip enterprises and SMEs in Shanghai and Shenzhen stock markets respectively. Even with the launch of cross-border ETFs, it is a good asset allocation direction to choose the Shanghai and Shenzhen 300 index funds and funds investing in overseas market indexes at the same time, which can play a role in diversifying investment and risks to a certain extent.