Index funds are what stocks to track and what stocks to buy. The stock position is generally 75-95%, which belongs to the stock fund with high position and is a special fund in the stock fund. The stock position of index funds is higher than that of other stock funds, and when the stock market rises, the net value rises rapidly; The stock market fell, and the net value fell quickly.

Features are as follows:

First of all, its performance is relatively transparent. When investors see that the target benchmark index tracked by index funds (such as SSE 180 index) has gone up, they will know how much the index funds they invest in can go up today. If the benchmark index falls today, you can know how much your investment has lost without checking the net value. Therefore, many institutional investors and some individual investors who can see clearly the general trend and are not sure about individual stocks prefer to invest in index funds, because index funds can give full play to the advantages of such investors in judging the general trend of the market, and there is no need to have the distress of "earning the index but not making money".

Secondly, the liquidity of its asset portfolio is better than that of general funds held centrally. Take Hua 'an SSE 180 Index Enhanced Fund currently being issued as an example. Not only does it stipulate that fund managers should allocate assets mainly according to the weight and composition of SSE 180 constituent stocks, but also stipulates that the number of investment in SSE 180 constituent stocks should not be less than 120. In other words, even in extreme cases, Huaan SSE 180 Index Enhanced Fund will not invest less than 120. Due to the dispersion of equity, the fund's future share sale has little or no impact on the stock price. In this way, the authenticity of the net asset value of the fund will be higher.

Third, the cost of investing in index funds is generally low. Because index funds generally adopt the investment strategy of buying and holding, their stock transaction costs will be less; At the same time, fund managers will charge lower management fees for index funds. For example, the management fee of Huaan SSE 180 Index Enhanced Fund is only equivalent to 2/3 of the management fee of stock funds that actively enter the market; The handling fees and sales fees charged by its custodians have also been greatly reduced. Many investors may not care much about this seemingly small difference, but if it is a long-term investment, the cost advantage of index funds will make investors gain a lot.