What is the fixed investment of index funds? Index funds, as the name implies, are fund products with specific indexes (SSE 300 Index, Pulp 500 Index, NASDAQ 100 Index, Nikkei 225 Index, etc.) as the target. ) as the goal, take the constituent stocks of the index as the investment object, build a portfolio by buying all or part of the constituent stocks of the index, and track the performance of the target index. Simply put, the fixed investment of index funds is the fixed investment of funds with average investment cost. It is one of the priority varieties for long-term investment. Usually, index funds aim to reduce the tracking error, so that the changing trend of the portfolio is consistent with the target index, and the return rate is roughly the same as the target index.

Advantages of Index Fund's Fixed Investment

Index funds are preferred for fixed investment, because they are rarely interfered by human factors and only passively track the index. In the case of long-term economic growth in China, long-term fixed investment is bound to get good returns.

Active funds are greatly influenced by fund managers. At present, the performance of active funds in China is not ideal in terms of sustainability, and it is often the champion of the previous year. The second year's performance is not good, and changing fund managers may also cause performance changes. So if you hold it for a long time, you'd better choose an index fund. If there is an index fund with rebounding market, it is preferred.