SSE 50 Index is a traditional market value weighted index, which distributes the weight of constituent stocks according to the market value of listed companies.
The fundamental factors of the company are less than the fluctuation of market value. Therefore, the fundamental 50 index is less affected by the change of the company's market value than the SSE 50 index, which can guarantee the overall income of the index.
Fundamental index has such an advantage, which is very popular abroad and develops rapidly. Now harvest fund has also introduced this investment strategy into China, issuing the first fundamental index fund of A shares-Harvest Fundamental 50 Index Fund, and investing in the 50 stocks with the highest fundamental value in the two cities.
Harvest fund and E Fund Company were the best index funds in China before, and their error rate in tracking the index was the smallest. For example, Harvest 300 has earned an average of 46% a year since it was issued and held. I believe Harvest 50 is also a good variety worthy of investors' expectation.