Funds, like stocks, actually have some indicators to analyze, but we may not care too much about these indicators at ordinary times. So today, Bian Xiao is here to sort out what the Treno index is. Let's have a look!

What is the Treno index?

The Trino index is a commonly used index when we usually buy funds. The greater the value of this index, the better the quality of the fund. Treno index, Sharp ratio and Zhan Sen index are called three classic indexes to analyze the quality of funds.

These three indicators have their own emphasis, among which the Treno index and Sharp ratio are actually similar. Treenor index represents the risk premium brought by unit systemic risk, and Sharp ratio represents the excess investment income of unit risk relative to risk-free assets in the portfolio, which is simply the increment of expected income brought by each additional risk. Zhan Sen index is an indicator to measure excess returns. If the Zhan Sen index is greater than zero, the performance is good; If the Zhan Sen index is equal to or less than zero, it means poor performance. Similarly, the bigger the Zhan Sen index, the better. Treno index, Sharp ratio and Zhan Sen index are all comprehensive indicators, which can measure risks and benefits at the same time.

The Treno index is used by investors to judge whether the risks taken by fund managers are beneficial to investors. When the Tereno index is high, the risk taken by fund managers is more beneficial to investors. On the contrary, if the Treynor index is lower, the risk that the fund manager takes will be worse for investors.

The calculation of Trelawney index is relatively complicated. For us non-professionals, it is enough to know that the higher the Trelawney index, the better. However, it should be noted that Trelawney index only considers system risks, not non-system risks.

What do you think of the Treno index when buying funds?

When we buy a fund, we can judge by looking at the Tereno index of the fund. The higher the Tereno index, the higher the risk premium, which is more beneficial to investors. The lower the Tereno index, the lower the risk premium, and the worse for investors.

When choosing a fund, we need to consider many aspects, not only the Treno index, but also the Sharp ratio, the Zhan Sen index and the maximum withdrawal. At the same time, we also need to look at the scale of the fund, the time of establishment and the fund manager for comprehensive consideration.

What does the Shanghai and Shenzhen 300 Index mean?

The Shanghai and Shenzhen 300 Index is an index composed of the stocks of the top 300 companies in Shanghai Stock Exchange and Shenzhen Stock Exchange, which can be used to reflect the development and changing trend of the securities industry. The Shanghai and Shenzhen 300 Index can be regarded as a "barometer" of the overall market trend. The Shanghai and Shenzhen 300 Index can be used as the evaluation standard of investment performance and create the basic conditions for indexed investment.

This ranking is more complicated, involving many changing factors, the most important of which is to rank according to scale and liquidity, and the proportion of liquidity is greater than scale. In addition to ranking, there are some other thresholds for entering the sample range of the Shanghai and Shenzhen 300 Index. For example, in principle, new shares cannot enter this sample range and must be listed for more than one quarter, unless the average daily market value of this stock ranks in the top 30 since listing. The shares of the Science and Technology Innovation Board Stock Exchange need to be listed for more than one year, and the shares of the Growth Enterprise Market need to be listed for more than two years.

The samples in the Shanghai and Shenzhen 300 Index will change with time and be adjusted twice a year, in June and July of each year. When adjusting, new samples will be added and old samples will be eliminated. Whenever the Shanghai and Shenzhen 300 index samples are adjusted, it will cause a series of chain reactions, and the corresponding stocks and index foundations will make some changes in their positions. For example, if a stock in the Shanghai and Shenzhen 300 Index Fund is eliminated, the fund manager may sell the stock, which may lead to a sharp drop in the stock when it is sold in large quantities.

The calculation of Shanghai and Shenzhen 300 Index is complicated, and the base point is 1000. Then a series of complex formulas are calculated according to the basic points. At present, the Shanghai and Shenzhen 300 Index is around 3,800 points, which is constantly changing and not fixed.