Passive fund refers to the performance that does not actively seek to surpass the market, and chooses a specific index as the tracking object. The rise and fall of the fund is completely consistent with the rise and fall of the market. It can be divided into two categories: one is a completely replicated index fund, that is, it completely tracks the market index; The other is the index-enhanced fund, which is adjusted according to the appropriate situation in order to obtain more benefits than tracking the index.

Let's talk specifically about these two types of funds, which are completely replicated index funds. Among them, the index fund tracking CSI 300 refers to establishing its own portfolio according to the stock types in CSI 300. Tracking the CSI 500 Index refers to establishing your own investment portfolio according to the stock types in the CSI 500, and tracking the GEM Index refers to combining your own investments according to the stock types in the GEM.

Another type of enhanced index fund, on the basis of completely replicating the index, generally replicates CSI 300 and CSI 500, which is large in scale and basically covers large and medium-sized enterprises. Fund managers will, according to their own choices, increase their holdings of some stocks they are optimistic about or reduce their holdings of some stocks that are not very good. This also shows that the income of enhanced index funds is much higher than that of fully replicated index funds, which depends on the judgment of fund managers, so the risk of enhanced index funds is higher than that of fully replicated index funds. But the risk is much smaller than that of active funds. Therefore, buying passive index funds has become the choice of many people.

So how to choose a suitable enhanced index fund can be judged by the following points. First of all, let's see what people are optimistic about. If you are optimistic about the broader market, you can choose the Shanghai and Shenzhen 300. If you are optimistic about the GEM, you can choose the GEM. Of course, there are promising industries. The second is to choose fund issuing companies, powerful fund managers, experienced managers with high yield. Of course, learning to avoid risks is the most important thing.