For us ordinary people, narrow-finger funds are more focused on a certain industry or a certain theme, such as the semiconductor 50(5 12760) fund, which is popular in recent years. In this regard, for small white investors, they lack the ability to judge trends, and it is best to choose a relatively stable broad-finger fund. These passive funds are mainly funds of SSE 50(5 10050), CSI 300(5 10300) and GEM 50( 159949).
Passive funds (usually index funds) generally choose specific index stocks as investment targets, trying to replicate the performance of the index, rather than actively seeking to surpass the market.
1, corresponding active funds are classified according to different investment ideas of stock funds. Generally speaking, the goal of active funds is to seek performance beyond the market.
2. Passive funds refer to funds that do not actively seek to outperform the market, but try to copy the performance of the index to obtain the average market return. Passive funds usually choose a specific index as the tracking object, so index funds are usually passive funds.
3.ETF fund, also known as exchange-traded fund, is a special fund listed on the exchange. A fund with variable shares. ETF combines the operating characteristics of closed-end funds and open-end funds. Investors can not only buy and sell in the secondary market of the exchange like closed-end funds, but also purchase and redeem like open-end funds. ETF is a tracking index, so it is essentially an index fund. Compared with traditional index funds, it is more convenient to buy and sell (it can be bought and sold at any time during trading hours) and the cost is lower.
4. The above passive index fund completely tracks the change of an index without making any adjustment. In addition, there is an index fund called enhanced index fund. According to the changes in market conditions, fund managers can make appropriate adjustments, that is, there is a certain amount of manual participation to obtain better returns.
What is the difference between a fully replicated index fund and an enhanced index fund?
1, a completely copied index fund-this is an index fund in the full sense, that is, it completely copies and tracks the trend of the index. This index fund is only configured and adjusted according to the constituent stocks of the underlying index and their weights. Although it will deviate from the actual index trend because of the change of investment ratio, the gap is very small, so it can be said that the probability of exceeding the index is very small. Therefore, this kind of fund has the highest degree of conformity with the index.
2. Enhanced index fund-this is to actively invest a certain proportion of fund assets while tracking the underlying index, so as to obtain income beyond the underlying index. This kind of fund has great flexibility in investment. In addition to aiming at the index, we can also do some intensive investment, which increases the variables relative to the index, which may bring investors a return higher than the index rate of return, or may cause the actual rate of return to be worse than the index.
Conclusion: If the active investment is done well, the enhanced index fund will surpass the replicated index fund. But if active investment is not done well, the situation is just the opposite.