Indexed securities investment fund
Index funds take a specific index as the target, take the constituent stocks of the index as the investment object, build a portfolio by purchasing all or part of the constituent stocks of the index, and track the fund products of the target index. The common indexes in A-shares are Shanghai and Shenzhen 300 Index and CSI 500 Index.
The reasons why beginners choose index funds to buy funds.
1, index funds directly track the index and copy the index to prevent fund managers or investors from manipulating the trend of fund net value.
2. The index fund rules are completely open, free from the influence of investment managers, and the information is open and transparent.
3. Investors who invest in index funds are less risky than investors who invest in a single constituent stock. At the same time, in the long run, driven by the economy, the overall situation of the index will rise, bringing good expected returns to investors.
4. Unlike stocks, index funds weaken the technical requirements of stock selection and timing, and only need investors to adhere to their own rules of fixed investment, thus saving time and effort.
5. Index funds are passive investments, which can eliminate systemic risks and reduce costs to a certain extent.
In short, index funds are a good choice for investors who just started to do funds.
Investment is risky, so be cautious when entering the market.