The Shanghai and Shenzhen 300 Index Funds bought 300 stocks that were tracked. Shanghai and Shenzhen 300 brings together 300 stocks in the two cities, which is a "barometer" reflecting the overall trend of the Shanghai and Shenzhen markets.

The index fund takes the constituent stocks of the index as the investment object, constructs the investment portfolio by purchasing all or part of the constituent stocks of the index, and tracks the fund products of the underlying index. The purpose of index fund is to reduce the tracking error, make the change trend of portfolio consistent with the underlying index, and thus obtain roughly the same rate of return as the underlying index.

Extended data:

1, compilation principle

Index funds invest in stocks according to the distribution of relevant stock market indexes, so that their fund returns are close to those of market indexes. In operation, compared with other open-end funds, it can effectively avoid unsystematic risks and has lower transaction costs. In the long run, index investment performance is even better than other funds.

2. Method of operation

Index fund is a kind of fund that constructs a portfolio for securities investment according to the principle of compiling securities price index. Theoretically speaking, the operation method of index fund is very simple, as long as you buy the corresponding proportion of securities according to the proportion of each securities in the index and hold it for a long time.

Baidu encyclopedia-index fund

Baidu Encyclopedia-Shanghai and Shenzhen 300 Index