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Diversification of investment styles: The diversified investment styles of index funds, such as broad-based index and dividend strategy index, provide investors with more asset allocation options and help to diversify investment risks.2.5 Investor Education and Financial Literacy Improvement


Improve market efficiency: the transparency and low rate of index funds help to improve market efficiency, reduce transaction costs and increase investor participation.2. The influence of index funds into individual pensions2.2 diversification of investment style


Improvement of market stability: the entry of long-term funds into the market will help reduce short-term fluctuations in the market and improve market stability, which is of positive significance to the healthy development of the capital market.2.4 Optimization of capital market structure

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