Huaxia CSI 500 Index Enhancement A is an index enhancement fund and a class A share of the fund. Index-enhanced fund means that on the basis of index fund, it will also actively manage the fund, such as stock selection and innovation, mainly in pursuit of excess returns.
2. What is an index enhancement fund?
Index funds originated in the United States, and the first domestic open index fund was formally established on June 8, 2002 +065438+, and the concept of indexed investment began to be introduced into the domestic capital market. Index funds are gradually welcomed by fund investors because of their advantages of low cost, transparent management, decentralization and high decentralization.
Index-enhanced fund is a kind of index fund. Through the organic combination of index investment and active investment, the optimal balance between investment risk and income is realized, and the fund strives to obtain investment income beyond the market and realize long-term stable appreciation of fund assets.
Third, the enhancement method of index enhancement fund
Judging from the specific operational characteristics of index-enhanced funds, there are generally two ways to enhance them.
1, select stock investment promotion.
On the basis of allocating some assets according to the target index structure, the fund manager can invest the remaining assets of the fund in stocks, industries and sectors with appreciation potential, and add positions in an appropriate proportion; Or appropriately reduce the positions of stocks, industries and sectors that have no appreciation potential; You can also increase or decrease the positions of different styles of stocks to enhance the effect of index investment.
2. Invest in financial derivatives.
In order to reduce the interest rate risk, the fund manager can invest the remaining cash in bullish stock index futures at the same time, and the contract value is equivalent to the asset size of the fund. Because of the leverage of stock index futures, it only needs less money to copy the performance of stock index.