Investment in Index fund during the end of bear market

Today, we will discuss some other methods of generating passive income. Investment in Index fund during the end of bear market not only brings cash flows to investors but also the potential price gain (hedging) after the stock market turns into bullish market again.

Index funds can give you a passive way to invest in the stock market. For example, if you invest money in an index fund based on the S&P 500 Index, you will be invested in the general market. Another example is The Tracker Fund of Hong Kong (SEHK: 2800). Both can generate steady dividend income to investors and they can enjoy the potential capital gain in the future..

The key advantage of investment in Index fund are: investors won’t have to worry about details like choosing specific investments, rebalancing your portfolio, or knowing when to sell or buy individual companies.

The major drawback of it require investor to know the economic cycle and investors normally get better returns when they investment in Index fund during the end of bear market.

今天, 我們會討論其他產生被動收入的方法, 其中一種便是在熊市末段(後期)購買指數基金, 它不僅為投資者帶來現金流, 還會替投資者在將來股市重投牛市帶來因吐利的潛在價格盈利。

指數基金可給為我們一個被動投資渠道。如果我們投資美股標普500指數, 我們可參與一般市場的投資。另一個例子是香港的盈富基金(2800.HK)。它們均可帶來穩定股息回報和未來的潛在的資本增值。

投資指數基金主要優勢在於投資者不用擔心他們選擇了具體投資產品(或公司股票), 為投資組合再平衡, 了解買賣個別公司的時機。

它其中一個主要缺點是要求投資者需要了解經濟(牛熊)週期的運行才可以為投資者在熊市末段(後期)購買指數基金而帶來更佳投資回報。