Index funds earn money that follows the market, especially broad-based index funds, which downplays the influence of stock selection and timing. Only by simply judging the valuation, they can get an annualized income of 6%~ 10%, which is suitable for investors with older grades and slightly lower risk tolerance who want to get income other than bonds.

Advantages of index funds:

① Index funds are passive funds, which can avoid the weakness of human nature;

2 index funds take a long time, as long as they don't enter the market at the highest point, the long-term investment index has a high probability of making money;

(3) The cost is low, and the fluctuation of comparison stocks is small;

For ordinary people, it is easy to beat a considerable number of individual investors by following the market. With the maturity of A shares, individual investors will be replaced by institutional investors. At this time, it is more and more difficult for partial stock funds to obtain excess returns, and the performance of index funds may be better than that of active funds.