Index funds follow the rise and fall of the index, so if the index rises, the index fund will most likely also rise, and investors will be able to reap benefits; if the index falls, then the index fund will most likely also fall. , then investors will suffer losses.

An index fund is a type of fund that tracks a specific index and constructs a portfolio by purchasing some or all of the stocks in the index. The purpose is to make the change trend of the portfolio consistent with the index. In order to achieve roughly the same rate of return as the index, index funds pursue market returns.

Investors should note that index funds come in two forms: on-exchange and off-exchange funds. Off-exchange funds include index funds and feeder funds, and on-exchange funds include ETF funds. The rise and fall of over-the-counter funds are determined by the investment targets. Therefore, investors can roughly understand the rise and fall of funds by looking at the rise and fall of the index. The rise and fall of funds on the exchange are determined by buying and selling transactions, so investors have to look at the buying and selling transactions. However, funds on the exchange trade in real time, so investors can see real-time transaction status.