First of all, we need to see clearly the target tracked by index funds. The investment goal of index funds is to obtain the rate of return of the underlying index. Therefore, choosing a suitable index is the key to investing in index funds. There is no good or bad index, and the most important thing is to adapt to your own asset allocation goals. For example, if you want to invest in small and medium-sized enterprises, you can choose small and medium index funds; If you want to invest in a certain industry, such as financial real estate, then the corresponding industry index fund is the main choice. For most investors who are optimistic about the market trend for a long time and want to share the fruits of economic development through index funds, they can choose a representative mainstream index, such as the Shanghai and Shenzhen 300.

Second, carefully consider the rate of each fund. The rates here include fund management fees, custody fees and subscription redemption fees. Although the first two items do not require investors to pay out of their own pockets, they should not be underestimated as expenses included in the fund assets. Generally speaking, ETF and LOF index funds have lower rates. Before choosing an index fund, investors should carefully read the fund contract and prospectus to understand the product characteristics and rate level.

If it is an index fund that tracks the same target, it is especially necessary to "care about the rate". For example, the same is the Shanghai and Shenzhen 300 Index Fund, with a maximum of 0.98% and a minimum of only 0.5%. The same is true for custody fees, subscription fees and redemption fees. Many investors will ignore the cost of investment funds. In fact, the rate of index funds will have a greater impact on returns. It is difficult for index funds tracking the same index to widen the performance gap, and the annual rate difference of about 1% is an important starting point to affect investment.

After choosing an index fund to buy, how to open an account has become a big problem for entry-level investors.

Generally speaking, you can buy index funds through the following channels: 1. Go directly to the bank counter to buy; 2. Buying and selling funds through the online trading system of various banks will generally enjoy certain rate concessions; 3. Through securities company transactions, fund transactions can be entrusted by telephone at the brokerage office, and brokerage fees are cheaper than banks; 4. Trading on the fund company's website can be entrusted for 24 hours, unlike buying in a bank, which is limited by trading time; 5. If it is ETF or LOF index fund, it is more convenient to buy and sell in the secondary market like stocks.