In my previous article, I discussed the issue of investing in the Shanghai Composite Index Fund. I proposed that investing in the Shanghai Composite Index Fund of A-shares at present can almost 100% achieve a passive profit. As long as the Shanghai Composite Index continues to rise, this fund will make a profit. Small and medium investors will never experience the situation of the index rising but not making money.

Many fans and friends asked: "The size of the Shanghai Composite Index Fund is too small, can I sell it when I want to?"

Now there are at least three Shanghai Composite Index Funds in the A-share market, with the largest one having a market value of several hundred million, and the smallest one having a size of tens of millions. I think it should be enough for us small and medium investors to sell. Last year, I bought a fund in India, and at that time, the fund's market value was only more than 40 million yuan. Later, when I sold it, it was very smooth, and there were no obstacles.

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Generally speaking, the fund managers of these index funds will not buy stocks full, they will leave a part of the cash to deal with the redemption of investors. It is generally normal to pay. Especially after the market goes up, the scale of the fund will generally grow rapidly. The fund with a scale of tens of millions in the bear market is very likely to grow rapidly to a scale of several hundred million in the bull market. We small and medium investors really don't have to worry about the value of the position of tens of thousands or hundreds of thousands of yuan that can't be sold.

Some fans and friends asked: "Can I still buy Hong Kong stocks now?"

I really can't say for sure about this question. Last year, I bought the Hang Seng Technology Index Fund and sold it after making more than 20 points. Later, I never bought it back. Because, I later compared the A-share market and the Hong Kong stock market and found that they each have their advantages, and it is difficult to say who is better.

Advantages of A-shares:

1. The transaction fee rate of A-shares is relatively lower. The transaction costs of Hong Kong stocks are obviously higher than those of A-shares. And the tax deducted after dividends in Hong Kong stocks is also higher than that of A-shares.

2. The industry sectors of A-shares are richer. The industry sectors of Hong Kong stocks are relatively concentrated in real estate, banking, and the internet industry. The growth potential of these industries has significantly declined. However, A-shares have a large number of emerging industry sectors, such as semiconductors, new energy vehicles, biomedicine, etc. Although Hong Kong stocks also have related listed companies, they are far inferior to A-shares in terms of scale and volume.The liquidity of A-shares is better. The daily trading volume and turnover rate of A-shares are generally higher than those of Hong Kong stocks. Good liquidity allows the same stock to have a higher valuation in A-shares, which is the liquidity premium, and this is a very reasonable phenomenon.

Advantages of Hong Kong stocks:

1. The valuation of Hong Kong stocks is lower. For the same stock, the H-shares of Hong Kong stocks may be more than 20% lower than A-shares.

2. Hong Kong stocks are more internationalized. Hong Kong stocks are fully internationalized stock markets, and it is more convenient for foreign capital to enter and exit.

Investment should be within one's own circle of ability, and do not do things beyond one's ability. Since I understand Hong Kong stocks relatively less, I ultimately chose A-shares as the main battlefield for my investment. In the future, as my understanding of Hong Kong stocks deepens, I will gradually increase my investment in Hong Kong stocks.

In the short term, the trend of Hong Kong stocks is stronger, but we cannot predict how the trend of Hong Kong stocks will be in the next few months. No one has the ability to predict the short-term trend of Hong Kong stocks. From the perspective of long-term investment, it is obvious that I have a better understanding of the listed companies and industries of A-shares, so I am mainly focusing on A-shares now.

Friends can appropriately lay out a small amount of Hong Kong stocks. It is not too late to gradually increase investment after understanding the corresponding listed companies and industries of Hong Kong stocks in the future. For example, Nongfu Spring of Hong Kong stocks is a good stock, but we found that its price-to-earnings ratio is as high as more than 30 times! It makes me feel that there is no advantage to be taken.

The stocks of good companies are expensive in any market, whether it is Hong Kong stocks or US stocks. Today, as the global financial market is increasingly integrated, it is becoming more and more difficult to obtain excess returns by investing in different markets. In the future, the global stock market is more and more inclined to rise and fall together.

In short, it is best to focus on investing in excellent industries and leading companies. As for which market to choose for investment, it is not a very important thing in the long run. Promising industries and excellent companies will shine and be sought after by people in any market.