When investors invest in funds, they will find that there are many fund products with the word "enhanced" more than the familiar index funds. Enhanced index funds rely on maintaining the characteristics of index funds as much as possible in the active investment direction, and by adjusting individual stocks, they can obtain a higher rate of return than the target index. So what's the difference between index-enhanced funds and index funds? Today, Xiaobian will tell you something about this part.

The investment ratio difference of index is the fundamental difference between index-enhanced funds and index funds.

For example,

Guangfa CSI 3 Index enhances the investment scope of the fund: the investment ratio of stock assets is not less than 9% of the fund assets, and the assets invested in the constituent stocks and alternative constituent stocks of CSI 3 Index are not less than 8% of the stock assets; The investment scope of Guangfa CSI 3: the assets tracking the CSI 3 Index shall not be less than 9% of the fund's net asset value.

In this way, 2% of index-enhanced funds can not invest in the underlying index, so they can use these 2% stock assets to realize the excess expected return of the index, which is the connotation of enhancing the index.

Therefore, the difference of index investment ratio will affect the index tracking.

The managers of index enhancement funds can increase their value by adjusting individual stocks while trying their best to ensure the index characteristics, and the index funds completely follow the underlying index. The higher the fitting degree between index fund and index, the better.

The management fees of the two are also different. The management fees of index-enhanced funds are higher because they are more dependent on fund managers.

The above is related to the differences between index-enhanced funds and index funds, and I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.