The broad base index is relative to the narrow base index. Broad-based index funds refer to CSI 300 and CSI 500, while narrow-based index funds refer to indexes of various industries, such as CSI Liquor and China Shipping Medical.

Generally speaking, a broad-based index refers to an index fund with a wide coverage of constituent stocks, which generally includes many industries, such as the well-known Shanghai Composite Index, the Shanghai and Shenzhen 300 Index, the China Securities 500 Index and the Growth Enterprise Market Index. Based on this feature, the number of constituent stocks of broad-based index is often large, the weight of a single stock is low, and the investment target is wider.

The content of this article comes from: China Law Publishing House "General Knowledge Series of Legal Life"