The first is the Hong Kong Hang Seng Index Fund. This is one of the most famous index funds in Hong Kong, which tracks the performance of the main board stocks of the Hong Kong Stock Exchange. Since the Hang Seng Index includes many companies listed in Hong Kong, the fund can well represent the performance of the overall stock market in Hong Kong. Investors who invest in this fund can participate in the overall market performance by holding fund shares, thus avoiding the risks brought by the singularity of stock positions.
Followed by small-cap index funds in Hong Kong. The fund mainly tracks the performance of small-cap stocks in Hong Kong, including companies with smaller market capitalization. Due to the limited investment opportunities for small companies in the market, the performance of funds is usually not as good as that of Hang Seng Index funds, but the corresponding risks are also low. Investors who hold the fund can get better performance in the period of greater economic vitality and better performance of small companies.
Finally, the China A-share index fund. This fund mainly tracks the performance of the mainland A-share market, and investors who invest in mainland stocks can quickly obtain the performance of the China stock market through this fund. Due to the large scale of the A-share market, the fund enables investors to easily obtain the performance of large companies, medium-sized companies and small companies. However, due to the characteristics of the mainland stock market, the fund may bring high volatility and risks.