Why index funds are suitable for fixed investment?
1, the professional regulations are relatively low.
Index funds take the stock index as the tracking target, and buy some or all of the stocks in the index. Buying index funds does not require users to spend a lot of time and energy to choose funds, nor do they need professional knowledge to judge whether it is a market, which can reduce the problem of investors stepping on thunder.
2, stable performance
Index funds are passive investments, which will not lead to unnecessary losses due to some subjective factors and reduce human errors;
3. Great changes
The rise and fall of index funds are entirely based on the stock market, which fluctuates greatly and is very suitable for fixed investment, while funds such as money funds and bond funds have small fluctuations and relatively small yields, so it is of little significance to make fixed investment;
4. Low cost
The management fee of active fund is generally 1.5%, the index fund is generally 0.5%, the custody fee of active fund is generally 0.25%, and the index fund is generally 0.0 1%. Although it seems that the interest rate difference has little effect on an investment, if the fund is fixed, the difference is very large under the influence of time and interest.