Index funds play an important role in investment funds. Compared with other investment funds, its expected return is easier to estimate and analyze because of keeping up with the index changes. However, in the process of investment, we will find that even the same market index, the changes of net expected return of different fund companies are different. Why? Today, we will talk to you about the reasons why the expected returns of the same index fund are quite different.

reason 1: different fund fitting degrees

the biggest advantage of index funds is that they have tracking targets, and their dependence on the investment level of fund managers is not very strong. The net value of funds is estimated more accurately and the information is open and transparent. Generally speaking, the higher the fitting degree, the more accurate it is.

However, many funds with the same index are not completely tracked, such as 8% tracking index and 2% enhancing investment, so the investment level and market changes of fund managers of various companies have caused differences.

reason 2: differences in fund investment strategies

for index funds, especially enhanced index funds, the differences in expected returns are as follows: in the active investment part, fund managers use this part to increase the expected returns, which will also increase the risks, and different companies have different investment strategies, resulting in different expected returns.

reason 3: the influence of fund size

the fund size has an influence on the expected return of the fund. Different fund funds will have different influences on the market, thus affecting the net performance of index funds. Generally speaking, the larger the fund size, the more stable its ability to resist risks.

That's all for the reasons why the expected returns of the same index fund are quite different. I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.