Index fund investment is the investment method favored by more and more investors. By tracking a specific index, investors can directly share the benefits brought by the index, while avoiding the risk of a single company's stock.

Compared with active funds, index funds have the advantage of relatively low cost, because they do not need high management fees and transaction costs. In addition, index funds do not need good forecasting ability, because their investment strategy is based on the existing information and data in the market and does not need expert judgment. Therefore, it is more transparent and easier for investors to understand and master.

Although the risk of investing in index funds is slightly lower than other investment products, it does not mean that there is no risk at all. There are countless uncertainties in the market, such as policies, economic environment, geopolitics and so on. Therefore, only by choosing a suitable index fund, diversifying risks and holding it for a long time can we achieve a higher rate of return in the investment of index funds.