Index companies have compiled many stock indexes, which can be used to reflect the overall trend of some securities and also provide an investment tool for the market. Many investors want to invest in index funds, but they don't know how to identify them. So which funds are index funds?

Which funds are index funds?

Funds with the words "index" and "ETF" in the fund name are index funds, funds with the words "index" are ordinary index funds, and ETFs are index funds that can be purchased, redeemed and traded in the market. Not all index funds follow the trend of the index completely. There is an index-enhanced fund that will actively allocate some fund assets to achieve a rate of return beyond the index trend.

The key to investing in index funds is to choose the index. In order to choose a more efficient index, we need to know the type of index and the channel to find it:

Types of 1 index: generally divided into broad-based index and narrow-based index. Funds with broad base index market value are widely distributed in the industry, while funds with narrow base index generally focus on investing in a certain industry.

Two channels: CSI Index Network and CSI Index Network.