The main characteristics of index funds are: first, the cost and sales expenses are low; Second, the fluctuation of a single stock will not have a significant impact on the overall performance of the fund, which is conducive to preventing and diversifying risks; Third, monitoring is relatively simple without making active investment decisions.
Index fund is a kind of fund that constructs a portfolio for securities investment according to the principle of compiling securities price index. Theoretically speaking, the operation method of index fund is very simple, as long as you buy the corresponding proportion of securities according to the proportion of each securities in the index and hold it for a long time.
For purely passively managed index funds, the capital turnover rate and transaction cost are relatively low. Management fees are often very small. Such funds will not invest too much money in certain securities or industries. Generally, full investment will be maintained, and there is no market speculation. Of course, not all index funds strictly meet these characteristics. Different index funds will also adopt different investment strategies.
At present, there are three index funds, Xinghe, Pufeng and Tianyuan, which are "optimized index funds" with the characteristics of index funds.
Index fund is a kind of fund with the principle of fitting the target index and tracking the change of the target index to realize the synchronous growth with the market. The investment of index funds adopts the investment strategy of fitting the target index return rate, and invests in the constituent stocks of the target index in a diversified way, so that the stock portfolio return rate fits the average return rate of the capital market represented by the target index. Index fund is an indispensable fund in mature securities market. In western developed countries, like other index products such as stock index futures, index options, index warrants, index deposits and index bills, they are increasingly favored by various institutions including exchanges, securities companies, trust companies, insurance companies and pension funds.
Index fund is a fund that ensures that the performance of securities portfolio is similar to that of market index. Operationally, it is the same as other funds. The difference between index funds and other funds is that it tracks the performance of stock and bond markets and follows a stable strategy. Its advantages in the securities market include not only effectively avoiding unsystematic risks, low transaction costs and delaying tax payment, but also the characteristics of less monitoring investment and simple operation. Therefore, in the long run, its investment performance is better than other funds.
Index fund is a kind of fund that constructs a portfolio for securities investment according to the principle of compiling securities price index. Theoretically speaking, the operation method of index fund is very simple, as long as you buy the corresponding proportion of securities according to the proportion of each securities in the index and hold it for a long time.
For purely passively managed index funds, the capital turnover rate and transaction cost are relatively low. Management fees are often very small. Such funds will not invest too much money in certain securities or industries. Generally, full investment will be maintained, and there is no market speculation. Of course, not all index funds strictly meet these characteristics. Different index funds will also adopt different investment strategies.
At present, there are three index funds, Xinghe, Pufeng and Tianyuan, which are "optimized index funds" with the characteristics of index funds.
The United States is the most developed western country in index funds. On 1976, Pioneer Group took the lead in establishing the first index fund in the United States-Pioneer 500 Index Fund. The emergence of index funds initiated a revolution in American securities investment industry, forcing many competitors to design low-cost products to meet the challenges. So far, there are more than 400 index funds in American stock market, and they are still growing at a high speed every year. The latest and most exciting index fund product is exchange traded fund (ETF). Nowadays, in the United States, the types of index funds include not only various American stock index funds, American industry index funds, global and international index funds and bond index funds, but also growth, leverage and reverse index funds. Exchange traded funds are a newly developed index fund.
The rapid development of index funds in China stock market benefits from the unique advantages of funds. In June 2002, it was only half a year before the SSE launched the SSE 180 index, and the Shenzhen Stock Exchange also launched the SZSE 100 index. After that, the first domestic index fund, Huaan SSE 180 Index Enhanced Securities Investment Fund, entered the market. At the beginning of 2003, another fund, Tiantong SSE 180 Index Fund, which closely tracks the trend of SSE 180 Index Fund, also went public. However, the development of index funds in China is not smooth sailing. In order to avoid systematic risk and individual stock investment risk, China's preferred index funds adopt different operating principles from those of foreign index funds. The main difference is that the managers of domestic optimized index funds can adjust the index positions according to the judgment of the index trend, and use the advantages of research and financial analysis to prevent some risky stocks from entering the portfolio in the process of subjective stock selection. In the part of indexed investment, funds Xinghe and Jingfu track the Shanghai A-share composite index, while fund Pufeng tracks the Shenzhen A-share composite index. Judging from the actual operation results of such funds, the performance is not ideal. The reasons are not only the defects of China stock market itself, but also the management reasons of fund companies. Nevertheless, index funds have become a favorite financial tool for many investors. With the continuous improvement of China's securities market and the vigorous development of the fund industry, I believe that index funds will have great development potential in China.
Index funds adopt passive investment, choose an index as the imitation object, and buy all or part of the securities in the securities market included in the index according to the standard of the index in order to obtain the same income level as the index.
For many investors, index funds provide the most convenient and simple way to invest. Investors don't have to worry about whether the fund manager will change his investment strategy, because index fund managers don't need to choose their own stocks at all, so it doesn't matter who the fund manager is.
The biggest advantage of investment index fund lies in its low cost. Because index fund managers do not need to take the initiative to choose stocks, the management cost of index funds is relatively low. At the same time, because index funds adopt the strategy of buying and holding, they don't need to exchange shares frequently, so the transaction costs such as commissions generated by funds when buying and selling securities are much lower than those of actively managed funds. In addition, two funds tracking the same index may charge different fees; And two funds covering the same market level may not necessarily use the same index as the benchmark. The average management fee of American market index funds is about 0. 18% to 0.30%.
In addition to saving money, index funds have another advantage, that is, they can save you from investing in poor fund managers. You don't need to pay attention to the troubles of the fund like those who actively manage the fund, such as whether the investment team has changed or not, and whether the fund manager is still in office.
Every market has winners and losers. Generally speaking, investors are the market, and the average return on their investment is the average return on the market. Investing in index funds is like investing in the whole market. In theory, all investors can get an average return. Maybe you think that some lucky or talented fund managers can outperform the market, so you want fund managers to invest in their unique way, instead of choosing stocks or bonds according to the index, then actively managed funds are your choice. This means that you must completely trust the ability of the fund manager.
Warren Buffett, an investment guru, once talked about index funds in his letter to shareholders. He said that for most institutional and individual investors, investing in low-cost index funds is the best way to own common stock.
197 1 year, Barclays International Investment Management Company launched the world's first index fund. At present, there are more than 160 index funds in the American market, among which the largest index fund is Pioneer 500 Index Fund, with a net asset of about $82.2 billion. In contrast, the number of domestic index funds is relatively small, such as Tiantong 180 Index Fund, Huaan SSE 180 Index Enhanced Fund, Boshi Yufu Fund and Rongtong Shenzhen Stock Exchange 100 Index Fund.
To understand the difference between the risk and expected return of index funds and other index funds, we must first know what index it tracks.
From the domestic situation, Tiantong 180 index mainly invests in the constituent stocks that make up the Shanghai Stock Exchange 180 index; The underlying index of Boss Yufu Fund is Xinhua FTSE China A200 Composite Index (75% Xinhua FTSE China A200 Index +25% Xinhua FTSE China government bond index); Rongtong Shenzhen Stock Exchange 100 Index Fund tracks Shenzhen Stock Exchange 100 Index.
It is worth noting that only when the constituent stocks change will the index fund adjust its portfolio. Buying or selling stocks from this will have an impact on the stock price.