Want to know the overall situation of the stock market, whether it is up or down, can be judged by different stock indexes. Stock index is to choose a basket of stocks according to different stock selection rules. For example, the most common Shanghai and Shenzhen 300 Index, the Shanghai and Shenzhen 3200 Index selects the top 300 stocks in the Shanghai and Shenzhen stock markets to form the Shanghai and Shenzhen 300 Index, which can well reflect the trend of the A-share market.
There are three major index systems in China: for example, the Shanghai Composite Index of the Shanghai Stock Exchange; Shenzhen Stock Exchange's Shenzhen Stock Exchange series index, such as Shenzhen Stock Exchange Index; A series of CSI indices of China Securities Index Co., Ltd. such as CSI 500 Index.
Index fund is a fund product that takes a specific index as the target, takes the constituent stocks of the index as the investment object, tracks the performance of the index by buying all or part of the constituent stocks of the index, and carries out portfolio investment.
Because the stocks held by index funds are very close to the index, the performance of the fund is also very close to the index.
The stock selection rules of various indexes are open and transparent, and most fund companies have developed different index funds, which can be said to be a special kind of stock funds. The purpose of index funds is to achieve the same increase as the index, so as to obtain the same level of income.
Because the stock selection rules of index are open and transparent, the fund managers of index funds are greatly limited in the number of categories of stocks when selecting stocks, so the performance of index funds depends largely on the performance of the index, and the dependence on fund managers is not high.
Throughout history, we can see that the index has been rising steadily for a long time, and the index fund has therefore become a popular investment tool in the market.
The above is the introduction of index and index fund, I hope it will help you.