Indeed, for the current market conditions, the index enhancement fund is definitely a wise choice. Take the Shanghai and Shenzhen 3 in rich countries as an example, instead of passively tracking the fluctuation of the Shanghai and Shenzhen 3 index, it adopts the quantitative enhancement model of rich countries, draws lessons from the application experience of international first-class quantitative analysis, and uses the multi-factor alpha model to predict the excess return of stocks, while striving for effective risk control, reducing transaction costs and optimizing investment portfolio. Different from ordinary index funds, the rich countries' enhanced index base will not completely copy the components of the tracking target, but will increase the weight of some optimistic stocks, and reduce the weight of those that are not optimistic, or even completely remove them. By constantly monitoring the transaction cost model, the transaction cost is minimized as much as possible. On the whole, it is to achieve excess returns, control active risks, and at the same time pay attention to cost reduction.

As a matter of fact, as of February 1th, the net growth rate of the CSI 3 Index Enhanced Fund reached 8.81% this year. In addition, the growth rate of the CSI 5 Enhanced Index Base in Fuguo reached 7.42%, both of which outperformed the tracking index. Benefiting from good performance, Fuguo CSI 3 expanded from 2.812 billion shares at the end of the second quarter of last year to 5.324 billion shares at the end of the fourth quarter, making it the index fund with the highest net subscription ratio here.