Of course, there is no assurance that this policy will continue in the future. Exchanges are free of charge, but subject to minimum initial and subsequent investment rules. Using an automatic investment plan is a convenient way to purchase fund shares. Using cost averaging, investors reduce market volatility and price fluctuations over time. The expected low turnover of index funds leads to less capital gains and thus to tax efficiency.
Indexing also allows for lower research and operating costs charged to shareholders.
Most importantly, index funds usually outperform managed funds concentrating on the same industries or markets. Over the long term, investors of index funds can benefit from both tax efficiency and market-tracking performance. However, you should be aware that there is no assurance the fund will be successful in achieving its objective. Indexes are not investment vehicles available for purchase - they serve as a tool for measuring the performance of the stocks in a defined industry, country, or other group. If the Index declines, the Fund will decline with it.