Improve market efficiency: the transparency and low rate of index funds help to improve market efficiency, reduce transaction costs and increase investor participation.2.4 Optimization of capital market structureImprove market efficiency: the transparency and low rate of index funds help to improve market efficiency, reduce transaction costs and increase investor participation.
Increase investment options: Incorporating index funds provides more investment options for individual pension investors, enriches the product line and meets the needs of investors with different risk preferences.2. The influence of index funds into individual pensions
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.The entry of long-term funds into the market helps to reduce short-term fluctuations in the market and enhance market stability. Personal pension as a long-term fund, its investment in index funds will reduce speculative transactions in the market and enhance the long-term investment attributes of the market. According to market research, long-term capital entry into the market can reduce market volatility and improve market efficiency and stability, which is of great significance to the healthy development of the capital market.The aging of the population is increasing: the proportion of people over 60 years old in China continues to increase, and it is expected to reach 29.9% by 2040, which poses great pressure on the existing old-age security system.