First, buy index funds through their own banks, over-the-counter fund subscriptions in stock accounts or fund companies and other websites;
The second is to buy index funds in the secondary market through stock accounts. The former refers to OTC funds, and the latter refers to OTC funds, which are limited to the purchase of index funds listed on the exchange, such as index LOF and ETF.
Extended information According to the standard of index composition, the fund that buys all or part of the securities in the securities market included in the index aims 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 the Shanghai Composite Index. 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 feature of index funds is low cost, and delaying tax payment will have a great impact on the fund's income. Moreover, this advantage will be more prominent for a long time. In addition, the simplified portfolio will make it unnecessary for fund managers to contact brokers frequently, or to choose stocks or determine market opportunities.
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