From the specific operating characteristics of index-enhanced funds, there are generally two ways to enhance: one is to choose stock investment to enhance. On the basis of allocating some assets according to the target index structure, invest the remaining assets of the fund in stocks, industries and sectors with appreciation potential, increase positions in an appropriate proportion, or lighten positions in stocks, industries and sectors without appreciation potential in an appropriate proportion. Another enhancement method is to invest in financial derivatives, such as buying bullish stock index futures.
What kind of investment strategy does the index-enhanced fund adopt? In principle, fund managers can choose a variety of investment strategies flexibly as long as they meet the investment requirements in the contract and seek to obtain excess returns. At present, most of the stock index-enhanced funds in the A-share market adopt quantitative investment strategy, and some of them rely on the active stock selection ability of fund managers.