If we simply choose the Shanghai and Shenzhen 300 index ETF linked funds for fixed investment, we can at least outperform about 70% of the funds, and it is also possible to outperform 90% of the actively managed funds in some cases.

There are several reasons for this phenomenon.

First, the index fund passively simulates the index, which does not require additional analysis by the fund manager, and the management cost is low.

Second, actively managed funds are greatly influenced by the personal factors of fund managers, who are a highly mobile profession. Every time a fund manager changes, even if the investment level has not dropped, it is always necessary to switch positions and exchange shares according to the preferences of the new manager, increasing unnecessary losses. Once the index selection criteria of constituent stocks are determined, they rarely change.

Third, a stock or an industry may fall for a long time. But the index won't. According to the changes in the market, the index will bring out the stocks that have been deserted and abandoned by the market, bring in active and representative fresh blood, and maintain this metabolism.

In short, regardless of today's topic, index funds will always get more income than most funds in the market. If you are confident to choose the best 20% or 30% actively managed funds in the market, you can take the time to make a choice. If not, a silly choice of a Shanghai-Shenzhen 300 index ETF linked fund for fixed investment can also achieve good results.