At present, after the initial easing of market panic and the gradual stabilization of investors' expectations, allocating index funds to share China's future long-term economic growth has become a hot topic for investors. Then, experts gave three reasons why index funds should be allocated:

1. The performance of index funds is close, so it is not easy for investors to "choose the wrong object"

The performance of index funds will be different according to the different underlying indexes and specific operation strategies, but this difference is far less than that of active funds. Take 2007 as an example. Among the active equity funds, the fund with the worst performance is171.75%. Among passive index funds, the fund with the worst performance is 66.52%. Choosing an index fund basically chooses the average rate of return of the market, and it is not easy to make the mistake of "choosing the wrong object". (The above data are calculated according to the daily net value of Galaxy Securities Open-end Fund. )

2. Are you sure you can choose active funds?

The performance of active equity funds is different. Among hundreds of funds, which ones can you choose? It is difficult to predict who can outperform the index this year, and it is even more difficult to find a fund manager who can continuously create excess returns. If the choice is wrong, the income will lag far behind the market average. If you don't consider luck, choosing an index fund is more likely to bring you the average return of the market.

3. Index funds will not "make mistakes on their own initiative"

Index funds pursue simulated market, which can avoid the investment risk caused by misreading the market by active funds. The management process is less affected by human factors and the performance is more transparent.

Huaan MSCI China A-share Fund, the first domestic open index fund, was split on April 29th. The 2007 annual report of Huaan MSCI China A-share Fund shows that from 2003 to 2007, the fund has achieved excellent performance beyond the performance benchmark for five consecutive years, which deserves investors' attention.