The biggest advantage is low cost. All index funds only need to copy their index trends mechanically, without manual judgment or a lot of research work by fund managers, so they are obviously superior to common active management funds in subscription fees, redemption fees and management fees.

Secondly, index funds are usually composed of 50- 100 stocks, which can effectively prevent risks.

Finally, save time, effort and worry.

Information about the index can be obtained through various convenient channels, and the index fund is quite transparent. All constituent stocks are regularly adjusted and made public, which can effectively measure the current trend and valuation of index funds.