At present, industry index theme funds in the market are sought after by investors, and industry theme funds are several funds that track a certain industry index. So, how to choose such a fund? Bian Xiao compiled how to choose industry index funds here for your reference. I hope everyone will gain something in the reading process!

How to choose industry index funds

1, industry choice

If you want to invest in industry index funds to get excess returns, you need to make a good choice of industries and choose high-growth industries to get better returns.

Investment is often greater than effort, and choosing to work hard on an excellent track is the way to get twice the result with half the effort. Among all industries, the sub-industries with the best long-term performance are food and beverage, liquor, household appliances, medical care and biomedicine.

In the long run, the food and beverage industry can definitely be called a bull stock concentration camp, and a large number of long-term bull stocks have emerged. Consumer goods industry represented by food and beverage can achieve long-term sustainable growth through economic cycle; Judging from the stock price performance, the consumer goods industry is more prone to big bull stocks, the stock price can continue to rise for a long time, and the long-term performance is obviously better than the market average, so it is the "long-distance running champion".

Of course, not all industries are worth investing in. If you choose the wrong industry, you may also face greater investment losses. For example, the securities industry, a strong cyclical industry, will be opened in three years if it is not open for three years. This kind of strong cyclical industry can only be invested when the bull market comes and the market rises. Such as coal, non-ferrous metals, steel and so on. These low-growth and depressed industries have basically been going downhill in the last decade, and they are still hitting new lows.

Step 2 choose a fund

Performance is the first thing everyone will look at when buying a fund, but we choose the basis and the past performance can be referenced. We can't believe it all. Don't be confused by short-term performance. It is probably an element of luck, which is unsustainable. Long-term performance has certain reference value.

In addition, turnover rate and retracement are also important. Funds with high turnover rate are not necessarily poor funds, but short-term transactions are frequent, and funds that chase up and kill down must have high turnover rate.

(1) Small tracking error: It is recommended to choose an industry index fund with small tracking error. The higher the fitting degree between index fund and tracking index, the more accurate it is, and the more accurate the income valuation is. The smaller the car, the less money. Estimate the increase of index funds according to the tracked index.

(2) Moderate scale: the scale is too small, and the ability to resist risks is poor, and it is not good to be too big. Generally, 500-500 million yuan is the best, but there are some excellent relaxation. But if the scale is below 200 million, we should pay attention to it, and this is still not recommended.

(3) Low rate: Of course, it would be better if the management fee and handling fee of the fund could be lower. Choosing a fund with lower service fee, subscription redemption fee and management fee can reduce the investment cost and increase the income ratio.

3. Choose an investment strategy

Method 1: periodic quota

Invest in Tian Tian Fund and set up automatic deduction for fixed investment, such as automatic deduction on the 20th of each month 100 yuan. This method is suitable for office workers with fixed income.

Method 2: There is no quota on a regular basis.

Make some flexible adjustments on the basis of method 1 For example, if you invest 100 yuan on the 20th of the first month and find that the fund you hold has gone up on the 20th of the second month, you should invest as appropriate.

Method 3: Buy on dips.

When the tracked fund falls to a certain point, buy it.

What should I pay attention to before investing?

First of all, you should see if you are suitable for investing in such funds.

It depends on your knowledge of an industry and whether your judgment is above average. For example, many people are optimistic about the fund of catering consumption concept, mostly because they see it rising better. Is there anyone with a higher judgment than others? With the increase of people's income and the gradual improvement of living standards, the living standards and consumption levels of residents in the future will continue to upgrade. Has the current index fund been reflected in the price in advance? Can you continue to go up in the next few years? If you can't judge these, you'd better choose a wide base, because at least you can get the average income of the market. If you are engaged in a certain profession or have a better understanding of a certain industry, it is ok to choose to invest in industry index funds.

Industry index funds are highly volatile. First of all, you need to know the position agreed in the index fund contract. Index funds usually have 90-95% positions in contracts. If there are no special circumstances in the daily investment management process, fund managers tend to maintain their positions at around 95%.

When the industry index goes down, index funds will also go down, and whether fund managers will lighten their positions because of the decline still needs everyone's attention. Therefore, such funds will fluctuate greatly. If you can't bear such fluctuations, it is recommended to choose a hybrid fund or a broad-based index.

Secondly, index funds should pay attention to balanced allocation.

It is suggested to adopt the core satellite strategy. Generally speaking, it is to divide the funds into two parts. Part of it accounts for a large proportion in the whole portfolio, which plays a decisive "escort" role in the security and income of the whole portfolio. The other part has a slightly smaller weight in the whole portfolio and is based on the core portfolio. However, just like a satellite roaming on the earth, under certain conditions, it can have a broader investment space and make investment more active, positive and flexible. It often has the opportunity to get amazing harvest, so it is called "satellite".

Core part: the proportion is high (generally above 50%), stability is the main factor, and the average market income is obtained, and the broad base index can be selected as the core configuration;

Satellite part: The proportion is relatively low (generally about 30%), and attacks are the main part, expecting to obtain excess returns. Industry index funds can be selected as satellite configuration, taking into account both growth and value industries and diversifying risks.

In a word, choosing industry index funds needs to bear large fluctuations, instead of blindly chasing up short-term returns. We should have a certain understanding and analysis of the industry, choose industries with good long-term returns, and then choose index funds with larger scale, better liquidity and higher industry purity to invest. At the same time, we should make a good investment strategy, distribute it in a balanced way, and make profits in time.

The meaning of fund investment

Fund investment is an indirect way of securities investment. By issuing fund shares, fund management companies concentrate investors' funds, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then bear the investment risks and share the benefits. Generally speaking, the securities investment fund is an investment tool that collects the funds of many investors and gives them to the bank for safekeeping, and the fund management company is responsible for investing in stocks, bonds and other securities in order to maintain and increase the value.

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