Option-based Trilogy:
1, to determine the index you want to invest. Index itself is not good or bad, only suitable or not. For most investors, the choice of a strong representation, to mainstream index, the index itself is a long-term upward as long as you can into their investment scope. If you want to get the average market return, you can choose to represent A Gu of the Shanghai and Shenzhen 300 Index, the best choice for broad-based index.
2, fly selection of fund companies. The fund company's strength, for the performance of index funds, plays a vital role. TOP10 fund companies, regardless of strength or experience are better than small companies, capital adequacy, how the product stability, how service ...... Therefore, the choice of large-scale fund is necessary, the big fund company's long-term operations of the index funds more It is preferred.
So, how to judge the strength of the fund company has not it? Company size is an important criterion, currently the general fund size of over 100 billion fund companies are not to be underestimated, down from 100 billion would be not to consider it.
3, locking index funds. The main indicators of screening include 4: Tracking error rate, the size of the fund, the establishment of age, the cost of cost.
The tracking error rate is lower than the industry level, but the lower the better. Determine the quality of a fund's index, the key is not profitability, but the tracking error rate. The lower the error rate, indicating a high level operation of the Fund, the risk of error is also smaller.
Fund size should not be too small. Small-scale index funds, indicating that fewer people buy, liquidity is relatively poor. Illiquid and may lead to more bad people buy, the probability of liquidation is relatively large. So, this scale should not be too small, usually not less than 200 million yuan.
Founded less than 1 year of age do not consider, the best choice for more than 3 years.
Management expense ratio as low as possible. In the layers of screening of the above fund, find the lowest cost index funds. Fund expenses, including management fees, custodian fees, subscription fees, redemption fees. In the selection of the fund, the lower the cost the better. Relatively speaking, the venue fund either management fees or transaction costs, are much lower than the OTC fund.
