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Index funds track specific indices and invest by replicating the composition and weights of index constituent stocks, striving to achieve returns similar to the index. Due to the lack of frequent stock selection by fund managers, management fees are relatively low, usually around 0.5% -1%. For example, the CSI 300 Index Fund closely tracks the CSI 300 Index, covering 300 large and liquid stocks in both the Shanghai and Shenzhen stock markets, and can reflect the overall performance of the A-share market. In the long run, the index has an upward trend. By regularly investing in index funds with fixed quotas, one can utilize the "smile curve" principle to accumulate more shares during market downturns and obtain returns when the market rebounds. Data shows that in the past decade, the annualized return rate of the Shanghai and Shenzhen 300 Index has been about 8%, and most investors who insist on investing in index funds can achieve asset appreciation. Index funds also have the characteristics of risk diversification and high transparency, suitable for long-term investment and pension planning, and are an ideal choice for ordinary investors to participate in the capital market.