2. Disperse and prevent risks

3. Deferred tax payment

1. Low cost. Index funds are cheap, and now the back-end expenses are very small, basically none. Back-end charges were originally set up to encourage long-term investment. But the current situation is mainly that many people don't understand whether the fund is a long-term investment or a stock market. If the holding time is too short, the fund company will be embarrassed and feel that it is not worth paying those fees for short-term speculation. So you will find that many fund companies have the option of "back-end fees", but they can't choose, and some simply cancel the back-end fees.

2. Disperse and prevent risks. Although from the perspective of fund holders, index funds undoubtedly have high risks, considering their own sample space, index funds also contain the characteristics of dispersion and risk prevention.

3. Deferred tax payment. Enterprise income tax is levied when an enterprise purchases stocks or securities (except funds). Selling listed stocks is subject to stamp duty and the fund is tax-free. Individuals who buy and sell unrestricted shares and open-end funds are not subject to income tax. Stamp duty is levied on the trading of listed stocks, and the fund is tax-free.