Passive index fund refers to the investment amount of the fund to the constituent stocks, which is carried out in full accordance with the weight of the relevant constituent stocks in the specific index, without subjective judgment and choice of the investment amount; In terms of market timing, we do not make any choice, and always maintain a high level of investment positions to obtain a high degree of fit between the fund performance curve and the underlying index fluctuation curve.

Investing in index funds saves time and effort. The performance of index funds is basically consistent with the general trend represented by the underlying index. Studying the general trend is simpler than studying individual stocks. Too many listed companies contain extremely complicated information, which ordinary investors cannot screen and judge. Investment index funds only need to judge the rise and fall of the index, and don't bother to choose individual stocks. You can buy index funds if you determine the general trend. How much the index rises, how much the fund will rise, simple and clear, and vice versa.

In addition, diversified investment can be realized at low cost. Minimum investment 100 yuan (subscription required 1000 yuan) to own portfolio securities. If you buy 1 lot of the five stocks with the largest market value, you have to invest several thousand yuan. In addition, choosing a more representative fund corresponding to the index, such as the Shanghai and Shenzhen 300 Index, the first all-market index in China, can also avoid the risk of inconsistency between the Shanghai and Shenzhen markets.