Why is index fund more suitable for fixed investment? Three advantages of index fixed investment With the improvement of people's financial awareness, fund investment is favored by more and more people. Many people choose to buy funds by means of fixed investment. There are so many kinds of funds. Why do you say that index funds are more suitable for fixed investment products? Let's find out. The fixed investment of the fund itself is not the best way to obtain the market income of the fund, but it is indeed the most suitable for investors who are not familiar with the market and do not have much time and energy to manage the fund. Its purpose is to balance risks and obtain average market returns, and index funds are also such products. Index funds have the following advantages < /p > First, it saves time and labor, and has low requirements for professionalism < /p > The fixed-time quota method is used to invest in the fund, which balances the short-term fluctuation of the net value of the fund to some extent and obtains the average income of the market. The index fund is an index with a specific index as the target, and 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 index. Therefore, the purpose of index funds is to track the average market return, not to beat the average market return. Index funds and fixed investment can be said to be consistent in concept, which is a combination of suitable households. Index funds and fixed investment do not need investors to spend a lot of energy and time to select funds, nor do they need to choose time, so they do not need too much professional knowledge to judge the market, so they are very suitable for fledgling investors or investors who don't have much time to manage funds. < /p > Second, it is highly stable and not easily affected < /p > Index funds are relatively stable. Index funds are passive investments and have little dependence on fund managers. For active funds, fund managers or research teams can obtain excess returns by optimizing investment strategies and selecting appropriate investment targets and positions, which is far ahead of similar funds. Fund managers and research teams have great influence on active funds. Therefore, the income of active funds in the market varies greatly, and even the change of fund managers or research teams will have a serious impact on funds, which is different for index funds. Index funds are to track indexes, and their investment targets are relatively stable and their operations are transparent. The stability is higher. < /p > Third, the transaction share fee is lower < /p > The transaction fee standards of different fund types are different. The fees of money funds and bond funds are the lowest, but the volatility of these two types of funds is too small to make a fixed investment. Among the remaining funds, the fees of index funds are the lowest, mainly reflected in the management fees and custody fees. For example, the management fees of active funds are generally 1.5%. The management fee of index funds is generally .5%, the custody fee of active funds is generally .25%, and the custody fee of index funds is generally .1%. Although it seems that the difference in rates has little effect on a single investment, if the fund is fixed, the difference is also great under the action of time and compound interest. < /p > Finally, according to the data, the proportion of active funds beating the market is very low, especially in the case of large market fluctuations, so the fixed investment of index funds is to exchange time for space, and on the basis of balancing risks, steadily obtain the average income of the market. < /p > The above are the three advantages of index funds for fixed investment, and I hope it will help you.