Index fund summary

One 、 Index fund valuation

1、 personal witness 500 Underestimation of ： P / E ratio is less than 25 underestimate , Greater than 40 overestimate .
2、 The profit income method is suitable for good liquidity , Varieties with relatively stable profits ： Dividend on Shanghai Stock Exchange , CSI bonus , The Shanghai 50, Fundamentals 50, The Shanghai 50AH, CCTV 50, Hang Seng Index , Hand Seng China-affiliated Corp Index ( Greater than 10% underestimate , Less than 6.4% overestimate ).

Currently investing in major funds ： Broad index funds （ Shanghai and Shenzhen 300、 personal witness 500）+ Excellent industry index （ consumption , Medical care , Technology ）+ Other derivative strategy indices （ For example, the dividend of China Securities Corporation ,300 value ,500 Low volatility , Fundamentals 120 etc. ）

Two 、 Several common profit stopping strategies

1、 Overestimate earnings , The difficulty lies in judging the range of index overestimation （ Each index has different properties , The strategies and methods for judging overestimation are also different ）, The investment cycle is long , But the yield is high .
2、 Target stop , For example setting 30% or 50% Until the profit target , Once the target is reached, the profit is stopped , Short investment cycle and simple operation , But the yield is lower than the overestimated earnings .

Several other profit stopping strategies ：
1、 Stop the profit in batches , For example, set the target rate of return 50%, On the basis of satisfying the conditions of profit stopping rate of return, it is redeemed step by step , For example, index funds have been rising , The yield is always greater than 50%, Weekly redemption 10%, It is better to enjoy the income brought by the continuous growth of index funds than a single full redemption . It should be noted here that the index fund rises more sharply after reaching the profit stop point , The more we are aware of the risks and possible big reversals , And once there is a big drop in the market at a high level , Direct redemption of the remaining portion during the insurance period , In this way, it is possible to miss the gains brought by the subsequent rebound of the market , But at least keep the income from our investment for several years , Not when the market not only does not rebound but also plummets , Our investment in the past few years has been lost .

2、 Market sentiment has stopped rising , When market sentiment is high , Colleagues and friends in the streets are discussing the stock admission , Historical experience tells us , It's time to stop the surplus .

3、 Target income method and algorithm ：（1+ The rate of inflation + Annualized yield of risk-free financial products ）^ Fixed investment years -1 The number of fixed investment years here is a power relationship, not a multiplication relationship , give an example ： Inflation 3%, Risk free financial management yield 5%, The fixed investment cycle is assumed to have been invested 5 Years. , Our target rate of return （1+3%+5%）^5 - 1 = 46.93% .

4、 Increase and stop profit , The increase of the index from the lowest point to the highest point in recent rounds of bull and bear market , Set the profit stop point according to the range of the current index point , For example, CSI 500 The lowest point to the highest point of the recent three waves of bull market have exceeded 200% growth , Then it can be increased in combination with the current point 100% Gradually reduce the position .

3、 ... and 、 Characteristics of index funds
1、 Index funds only have a stop profit , No stop loss , Because the index has the characteristic of immortality （ Unlike individual stock enterprises, which may go bankrupt due to poor management , The index does not have this problem and will constantly update the stock pool according to the rules ）, No matter how big the drop is, give it enough time , It will be fixed .

2、 An extension based on the first point , Although index funds, no matter how much they fall , As long as you keep holding it, it will be fixed , But can investors resist , Can you wait ？ So it must be If you want to invest your spare money, you can't use leverage , Otherwise, it will turn floating losses into real losses , Only with spare money can you afford to wait , You won't use money to redeem the floating fund because your family or life is in urgent need , This has led to the failure of so many years of investment .

3、 An extension based on the second point , Although you use spare money , Although you are willing to wait when you are at a loss , But the most precious time in life , A bull and bear market may need to wait 6~8 year , There are several things in life 8 Years make you wait , And most people are middle-aged when they can invest , It is also my peak period , How many peaks can there be in life 6 ~8 year , Time and tide wait for no man , After all, there are a few people who still invest when their beards are white like the stock god , therefore The margin of safety is important .
The margin of safety is simply not to be expensive , Make room for yourself , So the index goes up because you buy cheaper , You can make a profit as soon as possible , If the index falls , You will also fall less , So you get up earlier than others , Others need it 6 Get up in , You may be 3 I got up in .

This is for 2021 A summary of investing in index funds in ,2022 We continue to fight .