importance of cryptocurrency- Top Knowledge

Guide long-term funds to enter the market: Personal pension is a long-term fund, and its investment in index funds will help guide more long-term funds to enter the capital market and enhance market stability.2.6 Economic growth and wealth effectIncorporating index funds into the personal pension investment catalogue will also help to strengthen the education and popularization of financial market knowledge and enhance the financial literacy and risk awareness of the whole society. According to market research, individual pension investors pay more attention to the long-term performance and risk control of products when choosing investment products, which will prompt investors to pay more attention to the long-term trend and investment knowledge of financial markets, thus improving the financial literacy of the whole society.

The introduction of index funds provides more diversified investment options for individual pension investors. The first batch of 85 index funds cover broad-based index, dividend index and other categories, including Shanghai and Shenzhen 300 Index, CSI A500 Index, Growth Enterprise Market Index, etc. These index funds have clear investment styles and low rates, which can meet the needs of investors with different risk preferences. According to market analysis, broad-based index funds can reflect the overall performance of the market, while dividend strategy index funds focus on listed companies with high dividend ratio, providing a stable source of income for pension investment.Market scale growth: The inclusion of index funds is expected to attract more individual pensions to participate, thus increasing market scale and improving market liquidity.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 expansion of individual pension system is an important step in the development of multi-level pension insurance system in China, aiming at meeting the challenges brought by the aging population. According to the latest policy, the personal pension system will be extended to the whole country on December 15th, 2024, and the first batch of 85 equity index funds will be included in the catalogue of personal pension investment products. The implementation background of this policy is mainly based on the following points:1.2 Impact of market expansionUnderdevelopment of the third pillar: Compared with developed countries, the scale of the second and third pillar pensions in China is relatively low, which needs to be promoted through policy guidance.