First of all, we should understand the concept of fund. The so-called fund means that everyone gives money to a professional investor to take care of it. This man is called a fund manager.

According to the different investment objects selected by fund managers, funds are also divided into many categories:

Equity funds: As the name implies, fund managers buy stocks, which are high in risk and high in return.

Bond funds: The funds bought by fund managers are all bonds, with moderate risk and return.

Money Fund: Fund managers buy risk-free assets such as certificates of deposit, and the risks and returns are relatively low.

Hybrid funds: fund managers can buy anything, and the risks and benefits depend entirely on the level of fund managers.

When it comes to index funds, fund managers no longer choose stocks according to their own personal standards. Instead, I will use a specific index as a reference to invest in stocks under that index.

For example, the Shanghai and Shenzhen 300, which we often hear in the news, is actually an index. It represents 300 representative stocks of Shanghai and Shenzhen stock exchanges. It can be said that this index reflects the overall performance of the stock market.

Generally, we divide index funds into industry index funds and broad-based index funds.

Common industry indexes include consumption index, medicine index, liquor index, securities index, bank index, real estate index and so on. Industry index funds buy stocks in a certain sub-industry, and its trend has a strong periodicity.

For example, the consumption index is generally closely related to people's lives. No matter how the economy develops, people always eat and drink Lazar, so the consumer industry has been enduring for many years. Although there may be fluctuations in the middle, the overall situation is upward.

The generalized index is like the music ranking of a music platform in a certain period of time, such as the annual list of QQ music, the September list of Netease Cloud Music and so on.

We often hear about Shanghai and Shenzhen 300, CSI 500, Growth Enterprise Market Index and SSE 50. Which represent a broad-based index. Funds that buy stocks from them are called broad-based index funds.

Broad-based index funds generally buy relatively large-scale stocks, which are very comprehensive. To some extent, they represent the development trend of social economy.

In essence, the stocks behind index funds refer to the development of corresponding enterprises in various fields. As long as the country's development is still in the rising stage, the value of index funds will increase steadily with the economic development.

The so-called fixed investment of index funds means that by buying investment index funds on a regular basis, funds can slowly enter the market, which can make our risk curve very smooth.

Therefore, the fixed investment of index funds is a lazy investment method ~