There are many types of funds, including stock funds, bond funds, monetary funds, hybrid funds and index funds. Among them, the index fund takes a specific index as the target index, takes the constituent stocks of the index as the investment object, and constructs the investment portfolio by purchasing all or part of the constituent stocks of the index. The risk of index funds is relatively high, so what are the two advantages of index funds? Let's get to know each other.

What are the two advantages of index funds?

1 index funds are less affected by human factors. When choosing an index fund to invest, it is mainly to study the overall situation of the market, and then choose an index fund. After all, in fund investment, fund managers often change jobs, which will also affect fund investment.

The investment cost of index funds is relatively low. The subscription and redemption rate of stock funds is 1- 1.5%, while the rate of index funds is generally 0.5- 1.2%, which is lower than other funds.