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Is there a relationship between the net fund value and the broader market?
The net value of the fund will be affected by the stock, because the fund mainly invests in the stock market, and the rise and fall of the stock market indirectly affects the net value of the fund.

Index funds are fund products with specific indexes (such as Shanghai and Shenzhen 300 Index, Standard & Poor's 500 Index, Nasdaq 100 Index, Nikkei 225 Index, etc.) as the target. ) as the underlying index, and take the constituent stocks of the index as the investment object, build a portfolio by buying all or part of the constituent stocks of the index, and track the performance of the underlying index. Simply put, an index fund mainly buys the stocks in the index it tracks.

Generally speaking, the stock position of index funds is between 75% and 95%, which can be regarded as a special fund with higher stock position in stock funds. Because of its high position allocation, the net value of index funds can rise rapidly when the stock market rises; But when the stock market falls, the net value drops quickly.

Stock fund, as its name implies, refers to the fund that invests in the stock market, and the stock position is generally above 60%.

The biggest difference is that index funds are passive funds and stock funds are active funds.

In other words, index funds are used to track large market indexes. What the fund manager needs to do is to allocate the assets of the fund according to the proportion of the market index. It is best to buy this in a bull market; Stock fund is a fund manager who chooses stocks according to his own preferences, personal analysis and the direction stipulated in the fund contract, and determines the allocation ratio, so the fund management is more flexible.