The CSI 300 Index, developed by CSI Index Company, consists of 300 stocks with the largest scale and the best liquidity selected by Shanghai Stock Exchange and Shenzhen Stock Exchange. It is a financial indicator reflecting the overall situation of the stock market. The market value of the constituent stocks of the Shanghai and Shenzhen 300 Index accounts for more than 60% of the total market value of the domestic stock market, which is the most representative index of the domestic stock market. Investing in the Shanghai and Shenzhen 300 Index is equivalent to investing in a basket of stocks with the largest scale and the best liquidity in the domestic stock market.

Most fund companies have set up corresponding funds to track the Shanghai and Shenzhen 300 Index, and there are dozens of Shanghai and Shenzhen 300 Index funds in the market. Searching for the keyword "CSI 300" in various trading software can display the CSI 300 index funds of various fund companies.

Shanghai and Shenzhen 300 Index Fund Enhanced Index Fund

The purpose of index funds is to track the index and pursue the average market return, but sometimes, the market will have some relatively obvious opportunities to outperform the broader market and obtain excess returns. Therefore, some enhanced index funds in Shanghai and Shenzhen 300 index funds take measures to obtain excess returns on the basis of tracking the index, and commonly used operations include innovation and quantitative models. This operation is uncertain. The persistence and stability of obtaining excess returns are not clear, and the actions taken are not public, so this is also the risk of enhanced index funds. Overall, the enhanced index funds in the Shanghai and Shenzhen 300 Index performed well.

Linked funds in Shanghai and Shenzhen 300 index funds

Linked fund is an ETF, which invests most fund assets in tracking the same index to minimize the tracking error. Simply put, linked funds are not direct investment in stocks, but corresponding index funds in the investment field. Investing in this kind of fund can minimize the error of tracking index.