index fund refers to a fund that buys all or part of the securities in the securities market included in an index according to the standard of an index, and its purpose is to achieve the same income level as the index.

For example, the goal of the Shanghai Composite Index Fund is to obtain the same income as that of the Shanghai Stock Exchange. The Shanghai Composite Index Fund buys the stocks in the index according to the composition and weight of the Shanghai Composite Index, and accordingly, the performance of the Shanghai Composite Index Fund will fluctuate like the Shanghai Composite Index.

The most prominent features of index funds are low fees and delayed tax payment, both of which will have a great impact on the fund's income. Moreover, this advantage will be more prominent in a long period of time. In addition, the simplified portfolio will make it unnecessary for fund managers to contact brokers frequently, or to choose stocks or determine market timing.

Specifically, the characteristics of index funds are mainly manifested in the following aspects:

1. Low cost. This is the most prominent advantage of index funds. Expenses mainly include management expenses, transaction costs and sales expenses. Management expenses refer to the costs incurred by fund managers in investment management; Transaction cost refers to the transaction expenses such as brokerage commission when buying and selling securities. Because index funds adopt the holding strategy and don't need to change shares frequently, these expenses are far lower than those of actively managed funds, and the difference sometimes reaches 1%? /FONT> 3%, although this is a small number in absolute terms, the accumulated results will have a great impact on the fund's income in a long period of time due to the existence of compound interest effect.

2. Disperse and prevent risks. On the one hand, because index funds widely diversify their investments, the fluctuation of any single stock will not affect the overall performance of index funds, thus diversifying risks. On the other hand, because the indexes pegged by index funds generally have a long history to track, the risks of index funds can be predicted to some extent.

3. Delaying tax payment. Because index funds adopt a buy-and-hold strategy, the turnover rate of the stocks they hold is very low. Only when a stock is removed from the index, or when investors demand to redeem their investment, index funds will sell the stocks they hold and realize some capital gains. In this way, the capital gains tax paid every year (in developed countries such as the United States, capital gains belong to the scope of income tax) is very small. Coupled with the compound interest effect, delaying tax payment will bring many benefits to investors.

4. Less monitoring. Since there is no need to make active investment decisions in operating index funds, fund managers basically do not need to monitor the performance of funds. The main task of the index fund manager is to monitor the changes of the corresponding index, so as to ensure that the composition of the index fund is suitable for it.

Equity fund is a fund that the fund manager will invest most of his funds in the stock market, and the risk is relatively high!

I don't think there is anything uneconomical about the fund's investment! First of all, you have the ability to measure your capital and risk! Then choose the corresponding fund according to your own personality! Nothing is the best! What suits you best is the best! For example, if you feel that you can bear the risk, buy a stock with a relatively large return!

index funds can be considered if you want a quick return and are not afraid of losses!

I'm not brave enough to speculate about the future foundation! But I can tell you that the fund is a long-term investment! If you hope it can bring you great returns in a period of time! I can tell you that this is a very difficult thing! It is better to buy stocks, warrants and other things!

Recently, I feel that Harvest is stable and good (temporarily unavailable), Yin Hua's dominant enterprises have potential, and Huaxia's return is good (temporarily unavailable).