In the domestic stock market, the index has risen more than 30 times since its establishment, and it is a long-term upward trend. In other words, holding index funds for a long time will yield more than 30 times. The index fund looks unremarkable, but it is a very useful long-term investment tool.

The biggest advantage of index funds is that they have the characteristics of long-term rise, because the overall market situation is rising, so the index of the market is also rising, that is, the profits of these companies after making money are put into production to generate income, and so on, the funds tracking the index will also rise in the same period.

Therefore, as long as the country can develop stably for a long time and provide a good and stable environment, the companies corresponding to these indexes can generate profits continuously for a long time, so the index funds corresponding to the indexes can also maintain the same increase.

Another feature of index funds is their extremely long life cycle. Index funds track the index, and the index will always exist.

The purpose of index fund is to track the index and pursue the goal of achieving average market return. Performance mainly depends on the market and index, and has little to do with fund managers. In terms of cost, the cost of index funds is lower, the management fee of active funds is generally around 1.5%, and the management fee of index funds is generally around 0.6%.

In the process of investment, the most common risks are stock selection risk, timing risk and short-term market fluctuation risk. Index funds follow the index to pursue the average market return, which can help us avoid various risks and short-term market fluctuation risks caused by personal subjective judgment, so we can also maintain a good investment mentality.