Investing often requires relevant expertise, in-depth knowledge of specific companies, and adaptation of holdings to the actual situation. For a lot of investors, it's too hard. In fact, we may be able to "make a thousand pounds". Investing in indexation, although it may not necessarily allow us to outperform the market, can help us enjoy the average return of the market. In the end, we may find that although we have not racked our brains and exhausted our energy, we can still have a satisfactory harvest, and when the total account is calculated, we may be the winners. 
Malkill, the author of "Walking Wall Street", said in the book that the chances of consistently beating the market are too slim, and the best way is to buy the index**. Especially for the vast majority of investors, when constructing a portfolio, it is advisable to choose an overall index that covers a wide range of areas. Warren Buffett also pointed out in a letter to shareholders that "most investors, both institutional and individual, will sooner or later find that the best way to invest** is to buy inexpensive index**." It is even more difficult for the average investor to consistently outperform the market. Even if you bet on one **, you will get a lot of gains, but can you guarantee that the second, third, and even nth ** can still maintain high returns?Eventually, the earnings may be diluted when the ledger is calculated. For many investors, it's good to be able to keep up with the market. 
Therefore, for the average investor, the index** is a simple and convenient choice. As the name suggests, an index is one that closely tracks the underlying index. According to the classification of asset classes, indices can be mainly divided into ** indexes, bond indexes, and commodity indexes. Among them, the most popular ** index is mainly divided into broad-based, industry, theme, and strategy indexes. Specifically, broad-based indices usually represent the overall performance of a market or sector, with constituent stocks including all walks of life, and some broad-based indices are also named directly after the name of the market sector. For example, the Shanghai Composite Index reflects the overall performance of companies listed on the Shanghai ** Stock Exchange;The GEM index includes the most representative 100 GEM listed companies. The constituent stocks of an industry index belong to a specific industry;The constituent stocks of thematic indices all have the same thematic attributes. In addition, there are also strategy indexes, which usually select constituent stocks and determine weights for a specific strategy such as dividends, low volatility, fundamentals, value, etc. Before investing, understanding the classification of the index and its specific situation can help us select investment targets more accurately and conveniently. 
John Berger, the father of indexes, once lamented that the whole essence of successful investing is just common sense. However, the master's guidance sounds easy, but it is difficult to do. Investing in specific companies and industries requires a lot of "common sense". For most investors, even if we have professional knowledge and a systematic approach, it is difficult to ensure that we can choose the "winning general" in the market. However, investing in the market as a whole requires only judging the "general knowledge", and the odds of winning are likely to be much higher. As ordinary investors, we can learn more about index investment, including how to check returns, identify risks, calculate "cost performance", etc. In the next few issues, we'll also take a deeper look at index investing. E Fund Index wishes you a good night. 
Planning: Ding Jianming, Xu Zhao, Copywriter: Zhang Zhenhe, Anchor: Liu Yingjie, Editor: Li Ruoyu, Ya Wenhui