1, alpha income: refers to excess income. For example, the CSI 300 enhanced index fund, when the CSI 300 index rises by 50%, but the fund manager expands the fund income to 70% through technical means, then the extra 20% income is alpha income. Therefore, alpha income is an excess income, which needs fund managers to obtain through management, timing and stock selection.

2. Beta income: that is, the income of financial assets consistent with the market. For example, 50% of the income of the Shanghai and Shenzhen 300 Fund in that year belongs to the beta income, so the beta income is the income after taking market risks. If the performance benchmark is positive, the beta income will increase; if the performance benchmark is negative, the beta income will decrease.

Second, the meaning is different:

The part that fluctuates with the market is called beta income, and the part that does not fluctuate with the market is called alpha income. Namely: return on assets = alpha return+beta return.

First, introduce the origin of these two proper nouns in detail. Seaberry Sharp, a Nobel laureate in economics, divided the return on assets into two parts in a graduation thesis published in 1964: the part that fluctuates with the market is called beta return, and the part that does not fluctuate with the market is called alpha return. Matching to the formula is property income = α income+β income+residual income (residual income is a random variable with an average value of 0 and can be ignored).

Secondly, introduce the next two benefits in detail. First of all, we must define a market standard. Every asset that meets this market standard will have a beta index to show the fluctuation level of this asset relative to the market standard. For example, if the beta index is 1, it means that the fluctuation of the asset meets the market standard. If the market standard rises by 10%, the assets will also rise by 10%. For example, the beta system software is 0.9, which means that the uncertainty of assets is lower than the market standard. If the market finance industry rises by 10%, assets will rise by 0.9%. The beta index is 1. 1, indicating that the uncertainty is higher than the market standard. If the market standard rises by 10%, the assets will rise by 1 1%. It must be noted here that beta reflects the uncertainty of assets relative to the performance benchmark, which is a neutral index value. Why is it a neutral indicator value? Because it is assumed that β is 1. 1, the performance benchmark rises 10%, and the property rises 1 1%, it seems that stronger benefits have been obtained, but when the performance benchmark falls 1 1%, So β is not as big as possible.

Third, matching, the rise and fall of the pre-tender estimate with the performance benchmark is called beta income. For example, if the performance benchmark goes up 10% and the base price goes up 1 1%, this1%is the beta income. Beta income can be regarded as a relatively passive project investment income, that is, the income from taking market risks (performance benchmark decline 10%, base price decline 1 1%) (performance benchmark increase 10%, base price increase1). Generally, this kind of income does not need to be obtained voluntarily according to stock selection and timing, but only needs to be obtained with the rise and fall of performance benchmarks (such as the stock market). Most of the passive index funds you have heard of are such stock funds. So what is alpha income?

According to the above enterprises, we know that α income = property income-β income. What does this mean? For example. For example, if the benchmark performance of an equity fund rises by 10% and its beta is 1. 1, then the beta return is 1 1%. However, according to some countermeasures, equity funds have gained 20% returns, and 9% excess returns are alpha returns. It must be noted that this part of alpha income has nothing to do with the ups and downs of the market (the stock fund income caused by the increase of performance benchmark is beta income), and this part of income is the excess income that private fund managers must obtain according to management methods, timing and stock selection. Most of the stock funds in the market actively supervise and pursue the perfection of alpha income.