Back to the topic, why not recommend novice citizens to buy index funds? The most fundamental thing is that active equity funds can easily outperform the index because of the large number of retail investors, imperfect derivatives tools and a large number of alphas in the A-share market. The index of American market is hard to beat, because their capital market development stage is very different from ours. With the continuous improvement of our capital market, it may eventually become very similar to American stocks, but this process is quite long. Before that, we can enjoy the alpha of the times through active stock funds.
You can go and see for yourself. There are many large factories that do well in active rights and interests than those that do well in passive indicators. Speaking of excellent active public offering companies, you will think of Yifangda, the industry leader and the third largest winery in the world, taking the boutique route and rarely distributing products. Every year, several products can impact Guangfa, All-Star lineup and Central Europe with complete styles. But when it comes to the index, except Huaxia, other companies such as Tian Hong, Huatai Bairui, Guotai, Huaan, etc. actually have a low sense of existence in the eyes of the public (Note: individuals don't argue with me. Think for yourself. In addition to China Merchants CSI Liquor, several index funds are particularly famous.
Moreover, now is the IP era of fund managers. It is difficult for index fund managers to find a sense of existence and do personal IP, because passive investment mainly depends on the track, not how fund managers choose stocks. In other words, the resignation of the index fund manager will basically not affect my investment; However, the resignation of active equity fund managers needs attention in most cases.
How difficult is the IP of index fund managers? For example, in recent years, I have always liked to grow up creatively and be a band on the field. It took me a long time to know that the fund manager of this index is Rong Rong, and she is still a beauty. And Liu Jun, an index tycoon who won the Golden Bull Award seven times. You may not know that he is the head of the largest Shanghai and Shenzhen 300 Index. Of course, everyone will be familiar with Hou Hao, Luo Guoqing and Xu Zhiyan because they actively communicate with the market. But if you look at active fund managers, do you need to say more? Even Zhang Kun in recent years.