4 Tips for Index fund investment

--From the Buffett recommended index fund when a more than 30-year-old investor asked the best investment idea for this age, Buffett said: "I will use the money to buy Low-cost index funds." Unless I am buying during Great bull market, I am confident that it will perform better ... And I can come back and go on with my work. "This information has been translated and reproduced by the domestic media and articles, and some have even proved that the investment guru is also a fan of index investment." Mr Buffett, who specializes in active investment, recommends passive investment in index funds, actually contains a wealth of information: more than 30-year-old people suitable for investment index funds, index funds Low-cost, careful not to buy in Great bull market, index funds under certain conditions performance is very good, to concentrate on their work, not for the index short-term fluctuations troubled ... This information can be read as follows: first, the index fund is suitable for long-term investment. Buffett sees the questioner's age at about more than 30, so he advises him on the investment index. If the investment from 30 years old, to the age of 60 retirement, about 30, 30 years is really a long time. We review the three major U.S. stock indexes for nearly 30 years: The Dow Jones index rose from May 16, 1979 828.5 to May 13, 2009 8,285, dramatically increasing by 10 times times, an average annual growth rate of about 8%.　　Even after the "once-in-a-century" financial crisis, the average annual rate of return on the index has also won the CPI. Second, choose the right time to buy. Buffett's view is that great bull market's top buy index fund, the risk is very big. But if the market is at the bottom or the middle and the investment risk is fully released, the performance of the index fund is good enough in the recovery process.　　The Galaxy Securities Fund Research Center data show that as of May 13, in the rebound this year, the standard index funds in average net growth rate of 50.52% far exceed the standard equity fund of 36.28%. Third, the index fund low rates. The management fee of the general active Management Fund is 1.5%, the custodian fee is 0.25%, while the management rate of the domestic index fund is between 0.5%-1.3%, the trusteeship rate is between 0.1% and 0.25%, and the index fund can save about 1% of the management cost each year, relative to the active management Fund,　　That represents an additional 1% return on investment, with a significant difference in investment results from 20 to 30 with the power of long-term investment compounding. Investment do not forget the job. Buffett's words finally settled down to "... Go back to doing your job "is advice to all investors who are not investing as a career. After all, investment funds, investment in stocks, is only the way to manage their own wealth, and the root source of their own wealth is the work of the Labor paid.　　Arrange their own investment plans, strict investment discipline, ignore market fluctuations, often than stare at the market fluctuations and make their investment appear emotional tendency effect better. (Risk hint: market has venture capital need to be cautious)