Narrowing the benchmark index should pay more attention to specific industries. Industry development, understand the law of industry rotation.

Narrow-base index fund is an index fund financial product specially launched for a certain industry and a certain field. For example, index funds targeting agriculture, emerging industries and oil and gas industries. It is understood that the tracking index of narrow-based index funds is an industry index, which is greatly affected compared with the index of large-cap funds, and the corresponding investment risk is increased.

The skills of choosing narrow-base index funds: choose narrow-base funds with great development prospects, high profit-making effect or good industry stability in the investment industry;

Select the narrow base managed by the star fund manager, and the tracking error and excess return of the narrow base are determined by the fund manager; Choosing a narrow base with a large adjustment and a fund with a large adjustment in the previous period is more likely to oversold and rebound.