What is CSI 100 index fund?
CSI 100 Index is to select the largest 100 stocks from the sample stocks of the Shanghai and Shenzhen 300 Index to form sample stocks, so as to comprehensively reflect the overall situation of a group of large-cap companies with the most market influence in the Shanghai and Shenzhen stock markets.
So what is the Shanghai and Shenzhen 300 Index? In fact, the Shanghai and Shenzhen index is a collection of stocks of two major stock exchanges in China. It represents the fluctuation of stock prices in the two markets, has the function of revealing prices and reflects the overall trend of the markets.
Advantages of CSI 100 Index Fund
1 and CSI 100 index are selected on the basis of the Shanghai and Shenzhen 300 index, which are mainly aimed at the large market, that is, the most stable blue-chip stocks in the market, because the market value of these stocks is large enough, the P/E ratio and P/B ratio are excellent, and the profit stability is high.
2. The sample of CSI 100 index covers large leading enterprises in various industries, such as banks, insurance, petroleum, liquor, steel, transportation and other large listed companies.
3. The component stocks of CSI 100 index are mainly value investment, and the sample stocks of CSI 100 index are highly liquid and suitable for investment index.
Deficiencies of CSI 100 Index Fund
1 Like index funds, it has strong dependence on the index target and poor dependence on the fund manager, so it is impossible to improve the expected return through the operation of the fund manager.
2. lead the rise and not resist the fall. In any market, index funds are high positions, and it is impossible to avoid the risk of the stock market through the operation of fund managers.
100 index fund's shortcomings are so much, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.