Index funds, as the name implies, are funds that invest in specific indexes (such as CSI 300, CSI 500, CSI 100 (Aiji, Net Value, Information), SSE 50 and Growth Enterprise Market). They can invest in all or part of the constituent stocks of the index to build a portfolio to track the performance of the underlying index.

Generally speaking, index funds aim at reducing the tracking error, that is to say, the more consistent the change trend of the portfolio is with the underlying index, the more likely it is to obtain roughly the same rate of return as the underlying index. To put it bluntly. The more accurate the tracking, the higher the rate of return.

Many investors will definitely ask, since the index fund is a fund product that tracks the performance of the underlying index, is it true that if the index rises, the net value of the fund will definitely increase by the same amount?

Actually, it's not like this. Er Erjun sorted out the following five possible reasons:

First of all, is the index fund you bought enhanced?

Generally speaking, the index base is less influenced by subjective factors (fund managers, teams, etc.). ), accordingly, as long as the index keeps up, the rate of return should be good. However, it should be noted that the deviation value of funds with small scale and frequent purchase and redemption may be higher, and the income will be affected.

The enhanced index base has more free positions for fund managers to operate, of course, in pursuit of higher returns. The free part can be invested by choosing a promising industry or company in the index it tracks, or investing in other financial products. , but correspondingly, it will bring more risks. If the enhancement strategy is not done well, it will also drag down the non-free part of the rise.

From the performance point of view, enhanced income may not be stable, but if you meet an experienced fund manager, it is often higher than passive income.

There are many ways to track the index, and the information is incomplete.

Passive tracking index is mainly copied by full copy or sampling. In this regard, it is generally difficult for the public to obtain specific information, so I won't go into details. Enhanced words mainly focus on industry configuration and active timing, of course, the management team is still the most important.

However, the most important factor of the difference in performance returns often lies in the specific details. For example, the same Shanghai and Shenzhen 300 index funds, the performance difference at the beginning and end of the period sometimes reaches nearly 10%! Unbelievable! If you study the data of these funds one by one, you will find that it is not so easy to track an index.

The fund has few assets.

As mentioned above, scale is also an important indicator. Especially the large-cap index fund. For an index like CSI 300, it is very difficult to track accurately if the fund scale is small.

Fund raising time is at a high level in the market.

Index funds with relatively long fund raising time in the market will face greater redemption risk in the process of market decline, while index funds with relatively low positions will face less redemption risk. Then, to redeem index funds with high risks, it is necessary to prepare more cash and assets that can be quickly realized, so as to ensure that it can cope with a large number of redemptions without problems, and more cash will lead to less shareholding. In this case, the tracking effect may be slightly reduced.

The fund manager's position control is not flexible

The amount of funds raised by different index funds is different, and the order and way of fund managers opening positions are also different. In the end, it will be a little different. But in the final analysis, it is still a question of choosing an experienced fund manager.