When I first came into contact with index funds, I thought it was really a good thing. Dispersed the high risk of equity funds and hybrid funds, and the income is also considerable. Moreover, the sample stock market of the portfolio has a large scale and good liquidity, covering large-cap blue chips, small and medium-sized growth stocks and high-quality venture capital stocks, all of which are outstanding in various industries. For the fund Xiaobai, as long as the comprehensive index fund is covered, he can safely wait for the return, which is really the best choice for lazy people to vote.

But gradually, with the deepening of financial management knowledge learning, I found that things in the world are far from simple. First of all, index funds are really so good, but for Xiaobai, there is no rich fund knowledge and experimental experience. Moreover, why do people choose other types of funds, or just a combination of several single funds? There must be a reason behind the behavior.

First, briefly introduce the common broad-based index and the types of funds derived from the index, and then introduce the advantages and disadvantages of index funds (the reason for overthrowing my previous ideas).

Index: an indicative figure compiled by securities and financial institutions, reflecting the overall trend and level of the stock market, for reference only.

Broad-base index: contains more than 10 stocks, and the weight of a single constituent stock is: 50 million dollars, an index of this size can become a broad-based index, which has very good investment value.

Domestic index

1, Shanghai and Shenzhen 300 Index

Compiled by Shanghai Stock Exchange and Shenzhen Stock Exchange, 300 A-shares in the two stock markets that can reflect the overall trend of A-share market are selected as samples. Covering about 60% of the market value of Shanghai and Shenzhen stock markets, it has gathered 300 large-cap stock enterprises with representative scale and good liquidity. Choosing this index fund is equivalent to positioning the investment target on the average return of Shanghai and Shenzhen stock markets.

2. CSI 100 Index

That is, the maximum index of 100 constituent stocks is selected from the sample stocks of the Shanghai and Shenzhen 300 Index. That is, blue-chip stocks in large-cap stocks.

3. CSI 500 Index

That is, the index reflecting the stock status of small and medium-sized enterprises consists of the top 800 enterprises in Shanghai and Shenzhen stock markets, excluding the top 300 enterprises, namely the Shanghai and Shenzhen 300, and the rest are the top 500 enterprises.

4. SSE 50 Index

The sample stocks are composed of 50 most representative stocks with large scale and good liquidity in Shanghai Stock Exchange, which reflects the overall situation of the 50 largest enterprises in Shanghai.

5. SSE 180 Index

The index expands the selection range of components to 180, which can reflect the trend of stock prices more comprehensively. The choice of this index fund shows that investors are highly concerned about the blue-chip stocks in the market and optimistic about the overall income level of the Shanghai stock market.

6. Shenzhen Stock Exchange 100 Index

One is called Shen 100R(399004, Shen 100 price index) and the other is Shen 100P(399330, Shen 100 income index). We often say that the deep 100 index is deep 100R.