When the book is used, I hate it less. It's not difficult. Let's talk about it later. The so-called learning is endless, and finance is always new. With the rapid development of the capital market, new knowledge and new business iterations emerge one after another. If you want to dance your own waves in the financial wave, you must always keep the motivation to learn. Today, let's take a look at the Index Enhancement Fund:
Index-enhanced funds usually refer to an index, such as CSI 300 and CSI 500. On the premise of tracking the underlying index, the fund manager selects the constituent stocks that exceed the industry average performance through the enhancement strategy, and then obtains the double benefits of market beta and alpha.
Beta return, that is, the return of passive replication index, that is, the systematic market return.
Alpha income, that is, the excess income obtained on the basis of the selected constituent stocks, is the "enhancement source" of index-enhanced funds.
It can be understood as "index fund+active management fund", which requires higher active management ability of fund managers.
On the one hand, index-enhanced funds are index funds, which can closely track the benchmark index. When the index goes up, so do I. The index fell, and I also fell; On the other hand, we must strengthen active management, and the index will rise, and I will rise even more; The index fell, and I fell even worse.
1, products with deep application of quantitative strategy.
2. It is required that the strategy combination and target indicators should not deviate too much.
3. Strive to obtain more stable and greater excess returns on the premise of tracking the underlying index.
4. It has two characteristics of "indexation" and "initiative".
Index-enhanced investment is called "standing on the shoulders of giants", which can be well understood by its name:
1. "Index": the income from the rise and fall of the index, which experts call beta income.
2. "Enhancement": extra enhanced income, which experts call alpha income.
The enhancement part is the income part that investors are very interested in surpassing the index. In the past three years, the outstanding performance of the index enhancement fund has outperformed the CSI 500 index by 25%-30% every year. The enhancement strategy is mainly carried out through position control, industry rotation and quantitative stock selection.
Position control: it is necessary to judge the situation that the market trend determines the position through comprehensive research on macro, policy and economic cycle;
Industry rotation: it is to use the relative changing trend between industries to adapt to changes and carry out medium and long-term operations.
Stock selection operation: There are many methods of stock selection, mainly including company research, event-driven, multi-factor stock selection and so on.
(1) subjective enhancement
Subjective enhancement usually takes a certain proportion adjustment to the tracked index constituent stocks and selects some stocks to hold. You can also use derivatives and trading rules, such as playing new strategies, which can bring a certain degree of income thickening effect and test the experience and ability of fund managers themselves.
(2) quantitative enhancement
Index-enhanced funds usually adopt a quantitative stock selection model independently developed by the fund manager's quantitative team to build a stock portfolio after comprehensively weighing the stocks in the stock pool; Subsequently, the quantitative enhancement model is used to adjust the weight of index stocks in order to pursue excess returns.
Quantitative enhancement usually does not choose individual stocks, covers a large number of constituent stocks, and uses quantitative model to select stocks to obtain alpha income. At present, the most popular index enhancement model is mainly a multi-factor stock selection model, and the commonly used factors include: profit, growth, liquidity, operating ability, cash flow, valuation, trading volume, scale, volatility, dividends, consensus expectations and so on.
Choose one with high and stable excess returns.
Time is a friend of investment, and the test is whether it is sustainable or not.
Don't be demanding to enter the market at the lowest point, but don't buy at a very high position.
Hold for more than one year.
This article does not constitute any investment advice, but pure financial knowledge sharing.