# Why Indices?

**1. Diversification**

* Broad Exposure: Index funds provide exposure to a wide range of tokens across projects.
* Risk Reduction: By spreading investments across multiple assets, the risk of significant loss is minimized and the chance of picking a winner is maximized.

**2. Passive Management**

* Hands-off: Our indices are automatically rebalanced every hour with the most appropriate tokens for the index. Index funds aim to replicate the performance of a specific market index, providing returns that are consistent with the overall market.\*

**3. 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.

\*NOTE: Sol Index does not currently rebalance tokens within your wallet, as it is a non-custody solution. The tokens are rebalanced on the website and you purchase a snapshot of that index. We are working towards a system by which individuals can self-direct an index rebalance at any moment in time to the current token inclusion and weight.