1, the definition of index grading fund and index fund
Index-graded fund means that the stocks in the portfolio are divided according to the index proportion, and investors can choose different portfolio proportions according to their risk preferences. Index fund refers to investors investing in an index fund and tracking a standard index, such as Shanghai Stock Exchange Index and Shenzhen Stock Exchange Index, in order to obtain index income, rather than investors' investment income.
2. The structure of index grading fund and index fund.
Index grading fund is a multi-level fund, which consists of multiple portfolios. Investors can choose different proportions of investment portfolios according to their risk preferences to obtain different income levels. Index fund is a kind of fund that directly invests in index, which has the advantages of low cost and low management cost. Investors can track index returns by investing in index funds.
3. Investment strategies of index grading funds and index funds.
The investment strategy of index grading fund is that investors choose different proportions of investment portfolios according to their own risk preferences in order to obtain different income levels. The investment strategy of index funds is that investors invest in an index fund and track the returns of the index. Investors can get index returns by investing in index funds.
4. Rate of return of index grading funds and index funds.
The rate of return of index grading funds depends on the investment portfolio chosen by investors, who can choose different proportions of investment portfolios according to their risk preferences to obtain different income levels. The rate of return of index funds depends on the index invested by investors, and investors can obtain index returns by investing in index funds.
5. Risk of index grading funds and index funds
The risk of index grading fund depends on the investment portfolio chosen by investors. Investors can choose different proportions of investment portfolios according to their risk preferences to obtain different risk levels. The risk of index funds depends on the index invested by investors. Investors can get index returns by investing in index funds, but they will also bear index risks.
Index grading fund and index fund are the two most common investment methods for investors, and there are some differences between them in definition, structure, investment strategy, rate of return and risk. According to investors' risk preference, index grading funds can choose different proportions of investment portfolios and obtain different income levels; Index funds have the advantages of low cost and low management cost, and investors can obtain index income by investing in index funds. Therefore, when investors choose investment methods, they should choose a reasonable investment portfolio according to their own risk preferences in order to obtain higher investment returns.