Broad base index is an index covering many industries and a wide range of stocks. It is the most important and representative index in the market, which has the characteristics of dispersing risks, such as Shanghai Stock Exchange 50 Index and Shanghai and Shenzhen 300 Index. The fund that tracks the broad-based index is the broad-based index fund, which corresponds to the narrow-based index, that is, the industry index. The constituent stocks of an industry index must be the same as those of the same industry, such as the liquor industry index.
There are nearly 8,500 Public Offering of Fund in the market, and there are many optional targets for fixed investment. However, the mainstream broad-based index stocks include most industries, and the "survival of the fittest" will be adjusted once every six months. Investors don't need to pay attention to the changes of industries or individual stocks, which is very suitable for new investors, busy office workers with difficulties in choosing industries and long-term planners of asset allocation.