Index fund is a fund product that tracks the performance of specific indexes (such as Standard & Poor's 500 Index and Nikkei 225 Index), and builds a portfolio by purchasing some or all of the constituent stocks. So, do you know that buying index funds can really make money in the market?

Can index funds make money by fixed investment?

Index funds can make money through fixed investment. As we all know, fixed investment can level the long-term investment cost of the fund, especially for the falling market. Fixed investment can allow investors to accumulate low-cost chips in the process of falling, and investors can return to profit as long as they wait for a large-scale rebound. However, the following two situations may also occur:

1 index funds fell all the way after the fixed investment, and there was no expected rebound, so more funds were set up.

After the fixed investment of the index fund, it did not fall all the way, but rebounded. However, investors did not wait for the rebound, and the limited funds could not keep up, which made it impossible to return to the capital even if it rebounded later.

Therefore, fixed investment is a risky thing, but the risk of fixed investment of index funds is relatively small. This is why index funds are selected from the top listed companies with active transactions and representativeness. Therefore, there will basically be no stock explosion or the stock price will not turn back all the way south.

In addition, the funds for the fixed investment index are generally long-term planning funds, which are specially used for financial management, and the natural risks will be smaller.