To make every investment, you must have a clear investment logic and understand the source of income, so that you are more likely to make money in this market. So today I will talk about the income source of index funds. Bian Xiao has compiled the factors that affect the return of your index fund here for your reference. I hope everyone will gain something in the reading process!

corporate profit

The first point is the profitability of enterprises.

Everyone can understand this. After several rounds of bull and bear market, some stocks earn more than ten times, while others only earn several times or even lose money. The fundamental reason behind this lies in the profitability of the enterprise itself. Incorporating the sustained growth of stock performance will promote the long-term rise of the index.

evaluate

The second point is valuation.

I saw a citizen leave a message before: "Why do people say that investing in index funds makes money, but I have been losing money for nearly 5 years?" Bian Xiao pushed back the time. This citizen should have bought it at the highest valuation in the bubble of 20 15 small-cap stocks. Later, he didn't share the cost through fixed investment, so he still lost money.

Valuation is a way for people to evaluate the value of index investment. No matter how good the index is, it cannot be expensive.

At present, the commonly used valuation index is P/E ratio PE, where "city" represents market value and "profit" represents profit, so P/E ratio = total market value/net profit.

If a company's current net profit is 1 100 million and its total market value (stock price _ number of shares) is 1 100 million, then the P/E ratio is 10 times. The lower the P/E ratio, the better.

Another valuation indicator is price-to-book ratio PB, where "market" still represents market value, but "net" is not net profit, but net assets, so price-to-book ratio = total market value/net assets.

Similarly, the lower the P/B ratio, the better. When the P/B ratio is less than 1, that is, the total market value is less than the net assets, it is commonly known as "breaking the net", and the investment safety margin is high at this time.

When investing in broad-based index, because it contains many industries and the historical valuation center is relatively stable, the general P/E ratio and P/B ratio can be used as a reference for valuation.

Industry index does not have to use price-earnings ratio, such as consumer industry index. The stock profit behind it is stable and sustainable, which is suitable for reference price-earnings ratio; The index fund, which is dominated by strong cyclical stocks, has a relatively large annual profit fluctuation and a suitable P/B ratio.

transaction cost

Finally, look at the transaction cost, that is, the subscription fee and redemption fee of the trading fund, the management fee and custody fee of the fund itself.

Many friends may not care much about this, but if you choose the right time or invest a lot, it will be a big expense in the long run.

For example, for the same fund, the subscription rate of some channels is 1.5%, and some channels are 0. If the investment is 654.38 million yuan, it is the difference of 1500 yuan. This is the cost you can save by choosing the channel.

Among these three sources of income, the income cycle brought by corporate profits is longer. Because it takes time for enterprises to operate, it usually takes several years or even more than ten years for good enterprises to widen the gap.

The benefits of valuation have a shorter cycle, which will be more obvious after three to five years or a bull-bear market cycle.

The effect of cost is immediate, and saving is earning.

In addition, in recent years, the index fund itself is gradually making iterative progress, striving for better returns and investors' holding experience. Two more important changes are summarized below.

The first change is that there are many ways to increase income, such as subscribing for new shares. At present, the offline subscription of new shares in Shanghai and Shenzhen stock markets has a bottom position requirement of 60 million respectively, and some index funds are eligible to participate in the subscription of A-share new shares because they have held high-position stocks for a long time.

However, whether you can participate depends on the fund.

Secondly, the refinancing business started from 2065438+July 2009.

The refinancing and securities lending business in publicly offered funds refers to the business that the fund lends securities to securities companies at a certain interest rate, and the securities companies return the borrowed securities and corresponding equity compensation and pay the fees at maturity.

Generally speaking, a fund company will lend its shares to a securities company for refinancing business, and after the expiration, it will get the share return and the corresponding interest, and the interest income will be included in the fund capital.

The second change is the reduction of the rate. On the one hand, the fees charged by fund companies have decreased, such as redemption fees. It turns out that some C funds have no redemption fee for 30 days. After the reform, some C funds have no redemption fee for 7 days.

On the other hand, the transaction commission charged by brokers is also declining. Index funds also need to pay trading commissions when buying and selling stocks. Ten years ago, many trading commissions were only a few thousandths, but now the mainstream commission is only a few thousandths.

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

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★ Introduction to Fund Investment

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★ Knowledge of fund investment skills and methods

★ Common sense of securities investment funds

★ When is the best time to buy funds?

★ Necessary "wealth" and "talent" for financial management

★ What are the key points for investors to buy funds?

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