Investing in index funds is a more suitable investment type for our ordinary investors. This issue will explain the issue of the income of index funds: if the index fund doubles, will our income also double?
Many investors have this question: if the index we invest in doubles in the bull market, does that mean that the index fund we invest in also doubles?
In the bull market, if an index rises by 100%, the index fund will probably rise more. Why is this?
指数基金的净值=市盈率*盈利+分红
指数的点数=市盈率*盈利
The index does not consider dividends by default, but the index fund can receive dividends from constituent stocks. For index funds, annual dividends can also bring 2% - 4% of the income, so If the index doubles in the bull market, we will probably earn more from our investment.