Fixed investment in index funds refers to an operation mode of investing the same amount in index funds at a fixed time interval. Fixed investment is also the abbreviation of fixed investment fund. It is a kind of financial management method similar to bank's long-term savings in lump sum. It refers to investing a fixed amount in a designated open-end fund at a fixed time. The biggest advantage of the fund's fixed investment is that it can be shared equally, effectively reducing investment costs.

What is an index fund?

The investment object of index fund is index constituent stocks. Without the interference of human factors, it operates according to the algorithm, mainly in order to obtain the average income of the market and choose the asset allocation method.

There are two main types of index funds, broad-based index and industry index, but there are many other types of index funds on the market now.

We often hear about broad-based index funds in our daily life, such as Shanghai and Shenzhen 300 Index, Shanghai 50 Index, S&P 50 Index and so on. This kind of fund tracks the corresponding indexes, including the stocks of outstanding listed companies in all walks of life.

Industry index fund refers to the stocks of a certain industry, such as medicine index and science and technology index. Compared with broad-based index funds, due to the higher industry concentration, the income industry has been hit harder and the corresponding risks are greater.