Funds are divided into products with different risk levels according to different investment objects. As far as the Shanghai Composite Index is concerned, it is a high-risk investment. As an investor, you need to master investment skills. How to buy Shanghai Stock Exchange Index Fund?

Which funds are based on the launch of Shanghai Composite Index and Shanghai and Shenzhen 300 Index Funds?

What is the Shanghai Stock Exchange Index Fund?

Shanghai Stock Exchange Index Fund refers to the stock that it mainly buys in the index tracked by the Shanghai Composite Index. For example, index funds with the Shanghai Composite Index as the tracking target mainly buy the constituent stocks of the Shanghai Composite Index; The proportion of a stock in the Shanghai Composite Index is similar to that in the index funds that track the Shanghai Composite Index.

Characteristics of Shanghai Stock Exchange Index Fund:

1, the tracking index is the most popular.

Since the emergence of China Stock Market and Shanghai Stock Exchange, there has been the Shanghai Composite Index. There is no doubt that the Shanghai Composite Index is the most famous index in China stock market at present. The Shanghai Composite Index selects and brings together enterprises that best represent China's advanced productive forces, which can be regarded as one of the most direct and convenient indicators representing the growth of China's economy and capital market.

2. The widest coverage.

Compared with some characteristic indexes and industry indexes existing in the market at present, the Shanghai Composite Index has the widest coverage and is the most "balanced", which can accurately reflect the overall situation of the Shanghai securities market and better reflect the main development of the China securities market.

Investment skills of index funds;

First, determine the target of index fund tracking.

The investment goal of index funds is to obtain the expected annualized expected return consistent with the tracking index, so choosing the appropriate index is the key to investing in index funds.

Second, the index fund with smaller tracking error is preferred.

The index fund passively tracks the index, the smaller the tracking error, the stronger the management ability of the fund manager, which is more in line with the essence of the index fund.

Third, compare the backgrounds of the companies to which each fund belongs.

Index funds are passive investments, and the operation is relatively simple. However, the analysis and research of its tracking benchmark index is a complex process, which requires accurate calculation and rigorous operation flow. The stronger the fund company, the higher the investment cost and the higher the investment level.

Fourth, compare the rates of index funds.

The rate of index funds is lower than other active funds. It is difficult for index funds tracking the same underlying index to widen the performance gap. If they make a long-term fixed investment, the annual difference in the rates of different funds is an important reason for affecting investment.