This paper will introduce the basic concept, investment strategy, advantages and disadvantages of Shenzhen Stock Exchange 100 index fund.
Shenzhen Stock Exchange 100 Index Fund is issued by CSI Index Co., Ltd., which reflects the index composed of 100 A shares with the largest turnover and the highest market value in Shenzhen Stock Exchange. Shenzhen Stock Exchange 100 index fund is based on this index, which attracts investors' funds by setting up funds and obtains the investment income of the corresponding index by purchasing constituent stocks. Shenzhen 100 index fund is a passive fund, and its investment strategy is to track the benchmark index and minimize the subjective intervention of fund managers.
The advantages of Shenzhen Stock Exchange 100 index fund are mainly reflected in the following aspects. The investment threshold is low, and the stock market gains can be obtained by purchasing fund shares. The constituent stocks of the Fund have good market representation and can better reflect the trend of the whole A-share market. The fund is highly liquid and can be bought and sold at any time. The management cost of fund managers is relatively low, because their investment strategy is passive and they don't need to choose stocks actively.
Shenzhen 100 index fund also has some shortcomings. Because its investment strategy is passive, it is difficult for its income to exceed the market average. The income of Shenzhen Stock Exchange 100 index fund is greatly affected by the overall market trend, and it is impossible to effectively control the risk of a single stock. There may be a deviation in the buying and selling price of funds, and there may be a certain gap with the net value of funds.
As a passive fund, SZSE 100 index fund has the advantages of low threshold and strong liquidity, but its income is greatly affected by the overall market trend, and it cannot effectively control the risk of a single stock. When choosing Shenzhen Stock Exchange 100 index fund, we need to consider it comprehensively according to our own risk preference and investment objectives.