Index is a very popular fund in the fund market, especially suitable for long-term investment. From the risk-return characteristics, the overall rate of return of index funds is higher than that of bond funds and money funds, while the risk coefficient is lower than that of stock funds and hybrid funds, so it is also a fund suitable for most investors.

Index funds are also divided into different categories, including broad-based index funds, industry index funds, theme index funds and so on. In terms of yield, generally speaking, refer to the annualized interval of 10%~ 15%.

This interval is in line with the situation of most index funds, not absolute, and there is often no such absolute conclusion in the investment market. This income range will also be affected by many factors.

What is the impact on the return of index funds?

Index types are different.

If the index you hold is different, the possible returns will be different.

For example, both the Growth Enterprise Market Index and the Shanghai Composite Index are broad-based indexes, but the fluctuation range of the Growth Enterprise Market Index is higher than that of the Shanghai Composite Index. In contrast, the fluctuation range of Growth Enterprise Market Index and Shanghai Stock Exchange Index is smaller than that of some industry indexes, such as the range from June 20 10 to June 1. The increase of CSI liquor index is much higher than that of GEM index.

Accompanied by different rates of return. Of course, the index has gone up a lot, or it may have gone down a lot, so the risk coefficient is higher.

If you hold it in different time periods, the income will be different.

Secondly, the same index, held in different time periods, will have different returns.

Take the Shanghai and Shenzhen 300 Index as an example. From the beginning of July 20 16 to the beginning of June 20 18, the Shanghai and Shenzhen 300 Index rose. From the beginning of July 20 16 to the beginning of July 2020, the increase was the same fund that tracked the Shanghai and Shenzhen 300 Index. If the investment period is different, the return will be different.

In addition, the stock index is bound to fluctuate. The annualized income 10% ~ 15% is the long-term average. For example, a long-term investment cycle of at least 3 to 5 years may be more achievable, because if the holding time is short, such as 1 year, or even a few months, if the index just catches up with the bull market or bear market during this period,

Different operating strategies have different benefits.

The same index, the same time period, different funds and different operations will have different returns.

First, the fund fee may be different. Of course, this difference will be smaller. On the other hand, index-enhanced funds may have better returns than ordinary index funds. From the historical data, the index enhancement performed well in the staged bear market and the volatile market.

And if the same fund is bought and sold by some investors in the same period of time, such as selling and buying back, or adding positions, then the income situation should be different from that of the people who have been holding it.

In other words, for the same index fund, some people choose one-time purchase, and some people invest through fixed investment, so the rate of return will be different.

If you plan to invest in index funds for a long time, for example, for at least three years, you can refer to the annualized interval of 10%~ 15% to set your own target return or take profit target. The probability of achieving the target income is very high. If it is an industry theme index fund with relatively large fluctuations, it can also appropriately increase the annualized target income to about 20%.

I hope the above contents are helpful to you.