The constituent stocks with long-term competitive advantage and sustained performance growth ability are over-allocated, and the constituent stocks with weak competitive advantage, large performance fluctuation and low profitability are over-allocated. Index funds track the overall performance of the market, and the constituent stocks of the basic index are the stocks selected by the exchange according to specific rules. Investing in index funds is equivalent to buying a package of blue-chip stocks, effectively dispersing risks and avoiding the risk of individual stocks stepping on mines. Holding index funds for a long time can enjoy the average income of enterprise performance growth.
There may be ups and downs in the short term, but in the long run, it will always rise. For ordinary investors, it is best to invest in broad-based index funds and avoid investing in industry index funds. Rotation investment in this industry is still reserved for professional investors. The main broad-based indexes of A shares are SSE 50 Index, CSI 300 Index, GEM Index, CSI 500 Index and Kechuang 50 Index. The risk of index funds mainly lies in grasping opportunities or investors themselves, because investment index funds always rise in the long term, but may fluctuate greatly in the short term. If investors always chase up and buy when the index falls, the loss will become a reality.
SSE 50 Index is a strong sector of SSE 50 Index, and the performance of SSE 50 Index must be better than that of SSE 50 Index. E Fund SSE 50A never played cards according to SSE 50 Index. Weight distribution and active stock selection are all being adjusted, and the adjustment range is not small. E Fund Index Fund is good in scale, but E Fund is good at active funds.