How to choose index-enhanced funds

How to choose index-enhanced funds _ Advantages of index funds

Index-enhanced fund is a kind of asset portfolio, which uses index as a reference to invest and adopts quantitative methods to achieve the goal of reducing market downside risks while obtaining market equivalence or even exceeding market returns. The following is a selection of index-enhanced funds compiled by Bian Xiao, which is for reference only and I hope it will help you.

How to choose index-enhanced funds

fund manager

Compared with ordinary index funds, index-enhanced funds add more active management factors, so it is more important to consider fund managers. We need to know the investment ideas of fund managers, which can be understood through fund prospectus or regular fund reports. The investment strategy and thinking of fund managers are very clear.

After understanding the investment ideas of fund managers, what is the idea behind the fund managers? Under the guidance of such an investment concept, whether it can generate excess returns,

Excess rate of return refers to the rate of return that exceeds the benchmark rate of return of fund performance. For the same type of fund, the higher the excess rate of return, the stronger the profitability of the fund.

Tracking error

Tracking error is based on the difference data of historical returns to describe the closeness of the fund before exceeding the standard index, and can also reflect the characteristics of fund returns fluctuation. For index funds, the smaller the tracking error, the better the tracking effect, but it is different for index funds. The tracking error is not as small as possible, but needs to consider the deviation error and the deviation in which direction, such as timing, industry sector and various risk factors.

information ratio

Information ratio is a measure of the risk-adjusted excess return of a portfolio that is superior to a specific index. It is an average difference model based on markowitz, which is used to measure the excess return brought by excess risk. It represents the excess income brought by the unit's active risk.

When using the above three indicators, we need to pay attention to some problems. For example, the shorter the inspection time, the greater the influence of luck and the weaker the ability.

Even if the inspection time is long, whether the past performance can continue because the market environment has changed. Therefore, the index is only a reference, and the investment logic behind it is fundamental.

What are the advantages of index funds?

1 As a fund, we spread the risk of individual stocks by building a portfolio.

2. Low cost: the fund includes three aspects: management cost, transaction cost and sales cost. Because index funds use passive tracking, they don't need to exchange shares frequently, and the related expenses are lower than those of active management funds.

3. Closely track the index: With passive strategy to track the index, investors do not need to pay attention to who the fund manager is and what investment strategy the fund manager adopts.

In fact, among the types of index funds, there is another one that can be actively managed, and that is index-enhanced funds. The goal of index-enhanced funds is to gain market returns beyond the index while controlling risks, but in this way, the performance of index-enhanced funds may also be worse than the index.

What is an index enhancement fund?

1 Although index investment is well known, Bian Xiao wants to introduce a more advanced investment strategy-index-enhanced fund investment.

Compared with the traditional index fixed investment, the index-enhanced fund is a fixed investment, and the investment target is an index-enhanced fund.

What is an index enhancement fund?

An index fund can be understood as a person who keeps track of the index honestly. The more accurate the tracking, the more successful it will be.

The index enhancement fund can be considered as a person with active thinking. He also tracks the index, but not just the index, but hopes to achieve performance beyond the market through minor adjustments.

The intention is good, can index-enhanced funds outperform the broader market?

Bian Xiao studied historical data. So far, 70% of the index enhancement funds have outperformed the index after their establishment.

According to the data of 20 17, nearly 70% of the index enhancement funds outperformed the index.

The performance of this index improvement is still excellent.

In addition, in the domestic market environment, Rong 360 especially suggested strengthening the fixed investment index.

The specific reason is that the United States is a mature market, dominated by institutional investors. Index return is the result of mutual game between institutions, and it is difficult for fund managers to obtain super-market performance through intervention.

Our big A shares are different. Although it has developed rapidly in recent years, it is far from mature. Retail investors dominate the market, and institutions have long defeated retail investors. In this way, it is possible to obtain excess income through manual intervention.

3 The magic of the index enhancement fund is shown in the table below:

Make a few explanations:

1. The figures in the remarks represent "accumulated excess returns", not "income", so don't think it is too small.

2. Focus on tricolor funds.

Huatai Borui quantitative enhancement (000 172), established for four and a half years, outperformed the Shanghai and Shenzhen 300 for four and a half years in a row;

Jing Shun Great Wall CSI 300 has been enhanced (0003 1 1), and it has been established for four and a half years, and it has outperformed CSI 300 for four and a half consecutive years.

Xingquan 300( 163407), which has been established for seven years, has outperformed Shanghai and Shenzhen 300 for seven consecutive years.

Winner every year ~

four

Select Huatai Borui Quantitative Enhancement (000 172) mentioned above for fixed investment backtesting.

Assuming a fixed investment every month, the monthly investment is 65,438+0,000 yuan, starting from March 65,438+04, 2065,438+04 and ending on March 65,438+04, 2065,438+08, with a total term of 4 years.

The principal is 48,000 yuan, the absolute income is 2 1449.69 yuan, the yield is 44.69%, and the annualized rate of return reaches 18.98%.