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What's the difference between index grading fund and general fund?
Index grading fund and general fund are two important investment tools for investors in the investment market, and both play an important role in investment and financial management. So, what's the difference between index grading funds and general funds? This article will give you a detailed introduction to the differences between index grading funds and ordinary funds.

I. Definition of Index Graded Fund and General Fund

Index grading fund means that investors can invest in index funds, and their investment portfolio is similar to index, which can be graded according to investors' needs to meet their different investment needs. Ordinary fund means that investors can invest in ordinary funds, and their investment portfolio is not limited by index, which can be adjusted according to investors' needs to meet their different investment needs.

Two. Portfolio of Index Graded Fund and General Fund

The portfolio of an index-graded fund is similar to an index. Its portfolio is limited by the index, and it can only invest in the stocks in the index, but not in other assets. Therefore, investors can choose investment index funds according to their investment objectives. The general fund's investment portfolio is not limited by the index and can invest in stocks or other assets in the index. Therefore, investors can choose to invest in general funds according to their investment objectives.

Three. Investment risks of index grading funds and general funds

The investment risk of index-graded funds is affected by the index, and its investment risk is affected by index fluctuation. If the index fluctuates, investors' investment income will also be affected. The investment risk of ordinary funds is not affected by the index, but by the investment decision of fund managers. If the fund manager's investment decision is improper, the investment income of investors will also be affected.

Four. Investment income of index grading funds and general funds

The investment income of index grading funds is affected by the index, and its investment income is affected by the fluctuation of the index. If the index rises, investors' investment income will also rise; If the index falls, investors' investment income will also fall. The investment income of ordinary funds is influenced by the investment decision of fund managers. If the fund manager's investment decision is accurate, the investor's investment income will also rise. If the fund manager's investment decision is improper, the investor's investment income will also decline.

Five, the investment cost of index grading funds and general funds

The investment cost of index-graded funds is lower than that of ordinary funds, because the investment portfolio of index-graded funds is limited by indexes, fund managers do not need to make investment decisions, and investors can save investment costs. The investment cost of ordinary funds is higher than that of index-graded funds, because the investment portfolio of ordinary funds is not limited by indexes, and fund managers need to make investment decisions. Therefore, investors need to pay more investment costs.

Investment strategy of intransitive verb index grading fund and general fund

The investment strategy of index grading fund is tracking index, and its investment strategy is tracking index. Investors can choose investment index funds according to their investment objectives. The investment strategy of general funds is diversification, and its investment strategy is diversification. Investors can choose to invest in general funds according to their investment objectives, and adjust their investment portfolios according to the investment decisions of fund managers to obtain higher investment returns.

The above is the difference between index grading fund and general fund. In the investment market, investors can choose suitable investment tools according to their investment objectives and risk tolerance, so as to obtain higher return on investment.