2. As a tool for children's education funds: index funds can be used to invest in children's education funds and can be managed and invested;
3. As a management tool of pension: investors can make better investment in pension and get more income;
4. As a tool of wealth inheritance: index funds are formed after tracking specific underlying funds, and the investment direction is clear.
Advantages of index funds
1, avoiding the risk of single investment: it is very risky for investors to pay for a single stock; However, if you buy an index fund, the basket of stocks you invest in are carefully selected by authoritative index institutions, and these stocks have the characteristics of good performance and strong representation, so that the combination can better spread the investment risk in one investment;
2. Share the overall income of the market: active funds are mainly affected by the management and operation level of individuals; The index fund is a direct copy of the fund operation, which can obtain the investment income brought by the overall floating of the market;
3. High return on long-term investment: index funds are held for a long time, creating more returns;
4. Low cost: Index fund is an investment product that replicates the index collocation. It does not need to spend a lot of manpower and material resources to analyze and inspect in the early stage, and the transaction costs and management fees are much more affordable than ordinary funds.