Strategic index fund refers to a kind of fund that hopes to obtain excess returns by selectively and strategically optimizing fund positions. Strategic index fund is optimized on the basis of broad-based index fund. The so-called broad-based index fund only arranges all stocks in the order of market value when selecting stocks. Strategic index funds further screen these stocks on the basis of broad-based index funds, and usually adopt some investment strategies to screen stocks, rather than according to the market value of listed companies. This makes strategic index funds have the characteristics of combining subjective selection with objective data, thus making it more likely for such funds to obtain good excess returns. The above is what the strategic index fund refers to.
How to choose a fund
The choice of fund should be judged according to the individual's risk tolerance. If the risk tolerance is strong, investors can give priority to equity funds. Investors with moderate risk are suitable for buying hybrid funds. Investors with poor risk tolerance are suitable for buying bond funds and money funds. If the willingness to protect capital is strong, investors can invest in low-risk capital preservation funds and money funds. This paper mainly writes what the strategic index fund refers to, and the content is for reference only.