Index fund is:

1. Index fund, as its name implies, is a fund product that takes a specific index as the target index, takes the constituent stocks of the index as the investment object, and builds a portfolio by purchasing all or part of the constituent stocks of the index to track the performance of the target index.

2. Generally speaking, index funds aim at reducing the tracking error, and make the change trend of the portfolio consistent with the underlying index, so as to obtain roughly the same rate of return as the underlying index.

Advantages of index funds:

It is little influenced by human factors.

2. the rate is low. The subscription and redemption rates of general stock funds are 1-1.5%, while index funds are .5-1.2%.

3. Passive tracking index personal finance calculator, which is very intuitive. It is also suitable for short-term band operation. ?

4. Long-term investment has low risk and excellent return.

Extended information:

Disadvantages of index funds:

1. Too much fluctuation. For short-term operation, the risk is great.

2. lead the rise but not resist the fall. In any market, index funds have high positions, and it is impossible to avoid the risk of the stock market through the operation of fund managers.

3. The risk of fund redemption. If you want to quit early, you have to sell at a low level, which is easy to lose money. ?

4. The fixed investment of the fund is not applicable in all cases, and the effect is very different.

data from: index funds.