Index funds allocate stock assets according to the types and proportions of stocks in the tracked market index, which is passive.
They are all equity funds.
If you have a favorite fund manager who agrees with his investment philosophy, then choose stock funds, otherwise choose index funds.
Whether it is stock type or index type, it is basically the same as the market trend. When there is a bull market, the profit of stock/index in 1 year reaches 100%, and when there is a bear market, the loss can reach more than -50%.
Judging from the current market, China is now in a period of structural transformation, and it is difficult to rise sharply, but it is also difficult to fall. Therefore, I personally think that buying index or equity funds can achieve a yield of 20% to 30% in three years. The problem is not big, but there is no guarantee. If there are sudden structural risks, such as the outbreak of local government debt crisis, it is also possible to lose money.
If you want to get higher returns, you naturally have to take greater risks. Before buying a fund, you should look at how much you can lose, not how much you can earn. Choose investment varieties according to how much you can lose.