Index fund is a fund product that builds a portfolio by purchasing all or part of the constituent stocks of a specific index to track the performance of the underlying index. The following is a small series about how to master the selection criteria and advantages of index funds. Welcome to read!
What does index fund mean?
As the name implies, index funds are fund products with specific indexes (such as Shanghai and Shenzhen 300 Index, Standard & Poor's 500 Index, Nasdaq 100 Index, Nikkei 225 Index, etc.). ) as the target index, and take the constituent stocks of the index as the investment object, build a portfolio by buying all or part of the constituent stocks of the index, and track the performance of the target index.
Generally speaking, the purpose of index fund is to reduce the tracking error, make the change trend of portfolio consistent with the underlying index, and thus obtain roughly the same rate of return as the underlying index.
Selection criteria of index funds
There are more and more index funds in the market, and it is more and more difficult to choose index funds. Investors should pay more attention to two points when choosing index funds: on the one hand, finding such an index is as difficult as choosing stocks; On the other hand, choose index funds with smaller investment tracking errors. The smaller the tracking error of funds, the stronger the management ability of fund managers, and the more investors can achieve the goal of obtaining index returns.
According to the data of Galaxy Securities Fund Research Center, by the end of April 20 12, there were 133 standard index funds and 24 enhanced index funds in the domestic fund market, which was unprecedented in scale. In the face of numerous index funds, how should investors choose?
1, pay attention to the strength of fund companies-fund comes first
When choosing any fund, the strength of the fund company should be the primary factor that investors pay attention to, and index funds are no exception. Although the index fund is a passive investment, the operation is relatively simple, but tracking the underlying index is also a complex process, which requires accurate calculation and rigorous operation process. Powerful fund companies can usually track the underlying index more closely.
2. Pay attention to fund fees-cost wins.
Compared with actively managed funds, one of the advantages of index funds is low cost, but different index funds have different degrees of "low cost", so it is very necessary to minimize the investment cost. Of course, it should be noted that lower fees are important, but the premise is that the fund has good returns. Don't blindly choose index funds for lower fees.
3. Pay attention to the target indicators-the most important.
The core of index fund lies in the index it tracks, so it is particularly important to know the corresponding market when choosing index fund. In addition, investors can also achieve the purpose of asset allocation by investing in different index funds.
At present, there are many kinds of indexes in the domestic market, which can be described as "a hundred flowers blossom and a hundred schools of thought contend". Different indexes cover different markets and have different risk-return characteristics, such as Shanghai Stock Exchange 180 and Shenzhen Stock Exchange 100 index, which reflect the situation of Shanghai and Shenzhen stock markets respectively. CSI 100 and SME index reflect the situation of blue-chip enterprises and SMEs in Shanghai and Shenzhen stock markets respectively. Even with the launch of cross-border ETFs, it is a good asset allocation direction to choose the Shanghai and Shenzhen 300 index funds and funds investing in overseas market indexes at the same time, which can play a role in diversifying investment and risks to a certain extent.
Characteristics of heavy fund
The fund's heavy position is actually a stock bought by a large-scale fund, not a short-term investment. Therefore, they are generally in the hands of well-funded and top-ranked listed companies, and there are more than one fund company. Its market value accounts for more than 1/5 of the value of circulating stocks, which means that the fund holds more than 1/5 of the fund's heavy stocks. . One more thing to note: under the influence of the broader market, it is a great opportunity that investors should seize.
Then, let's talk about the three characteristics of the stocks of the fund's heavyweight stocks:
1. The fund company will also reduce the redemption value of the fund for its own profits and the future development of the company, and will increase the heavy position of the fund at the end of each month or quarter. This is a time point that everyone needs to pay close attention to.
2. The fund's heavyweight stocks are more and more popular in the market, and well-developed listed companies are holding shares. Its future development space is still quite good. At this time, it may encounter another problem, that is, the extremes meet, so when its funds reach a peak, it is necessary to retreat decisively in time.
3. The stock market is sometimes like a battlefield, and the front line is unpredictable and uncontrollable; It is necessary to improvise and prepare to retreat in time when the entire stock market falls; The entire stock market should also pay close attention to the rise and buy cautiously.
What are the listed companies with heavy positions in related funds?
Regarding the risk of "disintegration" of institutional groups, Xiang Yan, chief strategist of Guosen Securities, believes that in the current era of efficient information dissemination, it is normal for institutions to highly agree on the company's evaluation. In his view, whether "Bao Tuan" changes depends on the business cycle and has nothing to do with whether "Bao Tuan" itself changes. In fact, the fund's heavy position has been changing with the economic changes. For five consecutive years, only 100 stocks entered the fund before 10 stocks, which can be described as "iron institutions and flowing water".
1. Simei Media: shares held by various funds issued by fund companies, and are the top ten shareholders of the shares.
2. Caesars Travel: As of March 3, 2065438, the shareholding ratio of Shanghai Yin Qi Equity Investment Fund Management Co., Ltd.-Shanghai Tongmei Yin Qi Investment Management Center (limited partnership) was 0.99%.
3. Huicheng Technology: the shares held by each fund issued by the fund company and the top ten shareholders of the stock.
4. Xinjiang Zhonghe: As of March 3, 2065438, the shareholding ratio of Bank of Communications Co., Ltd.-Changxin Quantitative Pioneer Hybrid Securities Investment Fund was 0.4874%, the shareholding ratio of China Construction Bank Co., Ltd.-Boss CSI Gold Rush Big Data 100 Index Securities Investment Fund was 0.2582%, and the shareholding ratio of Bank of Communications Co., Ltd.-Changxin Quantitative Small and Medium-sized Securities was 0.2582%.
What does the fund mean by chasing up and down?
The fund chasing up and down means that when the fund rises, the basic people are very optimistic about the fund, but they will wait for the fund to rise for a while before buying. At this time, the fund is in a relatively high position. After buying, because the fund rises too high and the fund retreats, there will be a continuous decline.
At first, investors will still think about the fund's rise, and then redeem the fund when their losses are serious. At this time, it is equivalent to buying at a high level and selling at a low level, and they will lose money. Many novice funds can't resist the temptation of high fund growth, and wait until their losses are serious. If they do this often, they will lose more and more money.