Index fund is a passive fund, which takes a specific index as the tracking object and buys all or part of the constituent stocks in the index in order to obtain the same income as the index, so index fund can track the market.

Advantages of index funds: 1. Index funds track specific indexes, so the risk of stepping on mines is relatively small; 2. Index funds do not need to stare at the market, saving time and effort; 3. When the market is good, index funds can get considerable income; 4. Index funds are passive funds. They follow the index and will not make wrong decisions because of the subjective factors of fund managers.