Index fund is a fund product that takes a specific index as the target index, takes the constituent stocks of the index as the investment object, builds a portfolio by purchasing all or part of the constituent stocks of the index, and tracks the performance of the target index. For example, CSI 500, CSI 300, CSI 1000, SSE 50 and some industry indexes can also be invested through index funds.
The rise and fall of index funds is the rise and fall of the tracked index. The smaller the tracking error value, the more accurate it is. When investing in index funds, they generally choose to lay out in a bear market and eventually sell in a bull market to achieve final profit. But with the passage of time, assuming that the fluctuation of bull market and bear market is not considered, the overall trend of the index is upward.
Equity funds refer to funds that invest in the stock market, and the stock position cannot be less than 80%. According to the purpose of fund investment, stock funds can be divided into capital appreciation funds, growth funds funds and income funds. The main purpose of capital appreciation fund investment is to pursue rapid capital growth, thus bringing capital appreciation. This kind of fund is risky and has high returns.
Hybrid fund refers to a tool that invests in stocks, bonds and money markets at the same time, and its risk is lower than that of stock funds. It is divided into partial stock type (stock ratio is 50%-70%), balanced fund (stock and bond ratio is relatively average) and allocation fund (stock and bond ratio is adjusted according to market conditions).
When choosing the fixed investment of the fund, we should also choose the fund type launched by well-known fund companies. Such a fund company will have a good reputation, and at the same time, it will equip the fund with a good fund manager to ensure that the fund can obtain good returns for users.