1, the risk is less than that of equity funds.
Index funds are passive funds, which invest in index stocks and a basket of stocks, so they are less affected by individual stocks and will not plummet because of a heavy stock, and the fund as a whole will not suffer big losses. Therefore, the risk of index funds is relatively less than that of equity funds.
2. Index funds are sustainable.
Active funds have risks such as liquidation, and index funds are sustainable. Generally speaking, as long as the market and the underlying index are still there, index funds will always exist, and buying index funds is equivalent to buying national luck.
3. Low transaction rate
The frequency of active funds' position adjustment is generally higher than that of index funds, and the position adjustment requires transaction costs. Most index funds only adjust their positions when the sample stocks are adjusted, so the transaction cost is relatively low.
4. The fund fluctuates greatly.
The role of fixed investment is to spread investment costs and risks through diversified buying, while the volatility of index funds is greater than that of bond funds and money funds, and the advantages of fixed investment will be more obvious.
When buying a fund at one time, investors are easily guided by market trends, and there is a situation of chasing up and killing down, that is, buying in a heavy position when it rises, and stopping and redeeming when it falls.
Funds are different from stocks. When the fundamentals of funds are good, adding positions on dips is the best way to stop losses. This is the advantage of the fund's fixed investment. Buying regularly can prevent investors from being influenced by subjective factors.
So overall, index funds are more suitable for fixed investment. The above content about the fixed investment of index funds is good, and I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.