Lesson 14 Index Fund

A. What index?

1. Specific investment index
2. Change sync with the index
3. Collection of a basket of stocks performance
   
   
   advantages:
   by constantly absorb new stocks, and thus immortality
   
   
   Note: accept a loss of 5% -15% to the investment index funds.

II. How to buy index funds?

1. So many index funds, which do the cast?
   Recommendation: 300+ CSI CSI 500
   
   CSI 300: major investment in large enterprises - market-style
   CSI 500: Major Investment SME - small-cap style

how to buy?

2. What time to buy?
Fund investment:
advantages: low starting point amortized cost + + + simple way to reduce the risk

The first step: the strict implementation of fixed standard is scheduled to vote: the fixed period, fixed amount, fixed product

Step two: fixed investment period of three years


Step 3: Set a reasonable amount of money to deal with the special needs of the future