First, human factors have little influence.

An index fund is a fund that tracks a specific index and builds a portfolio by buying all or part of the constituent stocks of the index. In other words, if it is a completely copied index fund, there is basically no human factor, and the trend is completely consistent with the corresponding index trend; Enhanced index funds allocate most funds according to the weight of the benchmark index, and a small number of fund managers actively invest, so there are human factors, but this human factor has little influence, and the overall trend still follows the corresponding index.

Second, diversify investment and reduce the overall risk of the fund.

Although the investment target of index funds is stocks, it is risky, but investing in all or part of the constituent stocks of a basket of stocks corresponding to the index is less risky than other stock funds. For example, the Shanghai and Shenzhen 300, if the index tracks all constituent stocks, will hold 300 stocks. In other words, its investment mode is diversification, thus reducing the overall risk of the fund.

Third, the corresponding cost of index funds is low.

Because there are basically no human factors in the index type, the management cost is much lower than other hybrid funds and equity funds. The corresponding other expenses, such as subscription fees and redemption fees, are also lower than other hybrid funds and equity funds.

Fourth, the income is intuitive, not as tricky as people think (fund managers do not act, seek personal gain with public interests, etc.). )

What is the trend of the index? What is the trend of the corresponding index fund you bought? For example, if the index rises by 20%, the corresponding index fund you bought will also rise by 20%, which is intuitive and clear at a glance.

Risk disclosure: This information does not constitute any investment advice. Investors should not substitute such information for their independent judgment, or make decisions only based on such information. It does not constitute any trading operation and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.