Lower Costs, Higher Long-Term Returns

Index funds adopt a passive management strategy, and their lower fees can significantly enhance returns under the compounding effect.

Pension investments have long time horizons and emphasize cost efficiency. Lower fees reduce the cost pressure of long-term investing, allowing the compounding effect to work more effectively over extended periods, thereby providing investors with a better investment experience.

Transparent Operations, Clear Investments

Investing in broad-based index funds is akin to directly investing in the tracked index, with returns closely tied to the index's performance. For example, in the case of E Fund CSI A500 ETF Link Fund Y (022930), the constituents and weight distribution of the CSI A500 Index serve as the "blueprint" for this index fund's allocation. By replicating the index to construct the portfolio, the fund's holdings and structure will closely mirror the target index, aiming to accurately replicate its performance.

This transparent operational mechanism helps reduce the information gap between investors and the products they invest in, enabling investors to have a more comprehensive understanding of the product's risk and return expectations. Moreover, index funds are transparent, simple in strategy, and stable in style, allowing investors to better plan and adjust their pension investment strategies.

In short, broad-based index funds offer advantages such as risk diversification, continuous iteration, lower costs, and transparent mechanisms, helping pension investors share in the fruits of economic growth. This aligns well with the long-term, steady appreciation goals of pension investments.