Hello, index funds copy the target index, passively copy the trend of the index, and can only buy stocks that track the index. Even if the index falls, it will not lighten the position, which is to copy the trend of the index. Don't pursue excess returns outside the index.

Index funds adopt passive investment, choose an index as the imitation object, and buy all or part of the securities in the securities market included in the index according to the standard of the index in order to obtain the same income level as the index. For many investors, index funds provide the most convenient and simple way to invest.

The advantages of index funds, the certainty and transparency of portfolio, do not need to spend too much energy; Low transaction cost

The disadvantage of index funds is that they cannot avoid systemic risks; Fluctuation of subsequent index