Stock index fund refers to a fund that takes a specific stock index as an index and disperses funds into the stocks contained in the index. Unlike investing in a single stock, stock index funds invest in all the stocks contained in the stock index. For example, "SZSE 100 stock index fund" is a passive fund that invests in 100 stocks contained in SZSE 100 index.

Characteristics of stock index funds

1, which is not affected by human factors: the characteristic of the fund index is to buy only the constituent stocks contained in a specific index, so the fluctuation of individual stocks caused by human factors often does not have a great impact on the fluctuation of the fund;

2. Low risk: As the Fund makes a balanced investment in the stocks included in the index, the Fund has little fluctuation and relatively low risk.

3. Because the trend of the fund is basically consistent with the index corresponding to the fund, the management cost of the fund is very low. Accordingly, the management fee of the fund will be greatly reduced compared with other stock funds.

4. Transparency of income: Since stock index funds basically correspond to the rise and fall of stock indexes, there is basically no possibility of black-box operation and human factors. Compared with ambush, rat warehouse, raising the stock price through false information and other behavioral capital transactions, it is relatively transparent and fair.