The investment scope of Guangfa CSI 300 Fund: the assets tracking CSI 300 Index shall not be less than 90% of the fund's net asset value.
From the above comparison, it can be seen that 20% of index-enhanced funds can not invest in the underlying index, so they can use these 20% stock assets to realize the excess expected return of the index.
2. There is a difference in the tracking strength between the two: the manager of the index enhancement fund can try his best to ensure the index characteristics, but at the same time, he can increase the value by adjusting individual stocks, and the index fund completely follows the target index.
3. Different management fees: the management fees of index-enhanced funds are between active stock funds and index funds, so the management fees of index-enhanced funds are lower than those of index funds.