Index-enhanced fund means that no less than 80% of non-cash fund assets are invested in the underlying index constituent stocks and alternative constituent stocks. By over-allocating or under-allocating these stocks, we will make full use of the remaining positions for stock selection or other investment strategies in the whole market, and strive to obtain excess returns beyond the index performance.

Compared with ordinary index funds, enhanced index funds can obtain higher expected returns and bear higher investment risks.

We need to note that the investment effect of index enhancement funds is not always enhanced.

Then, how to buy enhanced index funds to improve the probability of income and fully reflect its enhanced characteristics?

Historical data shows that the excess return of holding enhanced index funds in the medium and long term is more obvious.

Enhanced index fund is a combination of passive tracking index and active stock selection to improve income. Most index-enhanced products in the market have relatively stable ability to obtain excess returns.

Historical data prove that the long-term excess return of index-enhanced funds is better than the short-term excess return.

The monthly winning rate of fund refers to the probability that the monthly income of index fund minus the benchmark monthly income of fund performance is positive within one year. For example, if an index-enhanced fund is positive for one year 12 months, then its monthly winning rate is (10/ 12).

A high-quality index fund must have a high monthly winning rate. This also means the probability that this gold outperforms the performance benchmark. The higher the monthly winning rate, it means that whenever you buy in a year, you have a great chance to enjoy the enhanced effect of this fund.

Therefore, to sum up, it is a good way to invest in index-enhanced funds by holding high-quality index-enhanced funds with high monthly winning rate in the medium and long term.