Why Indices?
Benefits of Investing in an Index Over Individual Tokens
1. Diversification
Broad Exposure: Index funds provide exposure to a wide range of tokens across various sectors or projects. This diversification reduces the impact of poor performance from a single token.
Risk Reduction: By spreading investments across multiple assets, the risk of significant loss is minimized.
2. Lower Costs
Reduced Fees: Index funds typically have lower management fees and expenses compared to actively managed funds or frequent trading of individual tokens.
3. Passive Management
Less Time-Consuming: Index funds follow a passive investment strategy, requiring less time and effort from investors compared to researching and managing individual tokens. Our indices are automatically rebalanced every hour with the most appropriate tokens for the index.
Lower Turnover: Reduced buying and selling within the fund can result in lower capital gains taxes and trading costs.
4. Consistent Performance
Market Tracking: Index funds aim to replicate the performance of a specific market index, providing returns that are consistent with the overall market.
Reduced Human Error: Passive management reduces the impact of human error in token selection.
5. Ease of Investment
Simplified Decision-Making: Investing in an index fund simplifies the investment process, as it eliminates the need to select individual tokens.
Accessibility: Index funds are suitable for investors with different levels of expertise.
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