What is an index enhancement fund?
Simply put, index enhancement fund is a kind of index fund, which is mainly based on index investment and supplemented by active management of fund managers. It is a kind of index fund, that is, on the basis of index investment, the fund manager's active stock selection is used as index enhancement.
There are standards for index enhancement funds, and 80% of positions must be screened from index constituent stocks and alternative constituent stocks, so the style of index enhancement funds is relatively certain and will not be easily changed.
The purpose of index enhancement fund is to strive for higher returns than tracking index through the judgment of fund managers. For example, an index enhancement fund tracks the Shanghai and Shenzhen 300 Index, and allocates high-quality stocks under the premise of tracking the index, so as to obtain an excess return of 10%, which is the purpose of index enhancement.
In this year's market, the CSI 500 Index performed well. According to statistics, more than 30 CSI 500 index enhancement funds have achieved excess returns beyond the index.
The fund's past performance and trend style do not predict future performance and do not constitute investment advice. Investors need to be cautious when investing, and investors should choose the fund that suits them. The long-term allocation effect of index-enhanced funds is good, but investors with high risk and low risk tolerance should also be cautious. Investors are reminded that the fund is risky and needs to be cautious in investment.