Index fund refers to a fund that buys all or part of the securities contained in a specific index according to the index standard, and its purpose is to achieve the same income level as the index and achieve synchronous growth with the market. The specific indexes here include the Shanghai and Shenzhen 300 Index, the S&P 500 Index, the Nasdaq 100 Index, and the Nikkei 225 Index.

The biggest advantage of investment index funds is passive investment, and the fund management fee is generally low and the cost is low. Because index funds are widely diversified, the fluctuation of any stock will not affect the overall performance of index funds, thus diversifying risks. Because the indexes pegged by index funds generally have a long history to track, the risks of index funds can be predicted to some extent.