What is an index fund and what is an index fund

1. Don't be in a hurry to buy **, don't just want to buy the lowest price, this is unrealistic. It is also good to really pull up**You are the high price**, so it is better to buy**miss, not to be at fault, not to buy and sell blindly**, it is best to buy **familiar with the disk**.

2. If you are not familiar with it, you can simulate trading first, be familiar with the nature of stocks, it is best to follow for a day or two, familiar with the operation methods, and you can master the best points.

3. Pay attention to the necessary technical analysis, pay attention to the changes in trading volume and the language of the disk (the situation of the disk buy and sell orders).

4. Try to choose hot spots and appropriate points, so that the stock price can be out of the cost area after the same day.

Three people and: ** is more, the popularity is strong, the stock price rises, and vice versa. At this time, what is needed is personal ability to watch the market, and whether it can find hot spots in time.

This is the key to success or failure. **Operation** to be ruthless, the mentality to be stable, it is best to be correct**after the stock price** out of the cost, but once the judgment is wrong, when it comes to adjustment**, it is necessary to sell the stop loss in time, you can refer to the previous post: win in the stop loss, here will not be repeated.

Fourth, the skills of selling**: **It is impossible to be all the time**, there will be adjustments when it rises to a certain extent, then the **operation will be sold in time, generally speaking, when making money, it is right to sell at any time. Don't want to sell the most, but for the sake of the greatest profit, there are still skills in selling, I will introduce my experience (not necessarily the best):

1. If there has been a certain large increase, and the volume is rapidly rising to the price limit without sealing the limit, you can consider selling, especially if there is a long upper shadow.

If you put a huge amount of stagflation or a long upper shadow line in the minute or daily line, you generally do not continue to increase the volume the next day, and it is easy to form a short-term top, so you can consider selling.

3. You can see the 15 or 30-minute chart of the tick chart, such as 5** cross 10 days ** down, and sell in time when the trend feels weak, this trend is often the beginning of the ** adjustment, which is very valuable for reference.

4. For the wrong purchase, you must stop the loss in time, the higher the better, this is a long-term actual combat practice accumulation process, you have to pay if you see the mistake, there is nothing to wait.

It refers to a product that takes a specific index (such as CSI 300 Index, S&P 500 Index, NASDAQ 100 Index, Nikkei 225 Index, etc.) as the underlying index, and takes the constituent stocks of the index as the investment object, and builds a portfolio by purchasing all or part of the constituent stocks of the index to track the performance of the underlying index.

Generally speaking, the index is actually a stock selection rule, its purpose is to select a basket of ** according to certain rules, and reflect their average ** trend, just like the average score of mathematics in a class, is to add up the mathematics scores of all students in the class and then find the average, the average score obtained is a "mathematics score index", its trend represents the average mathematics score trend of the class. According to the stock selection rules of the index, the company goes to the exact same basket, and the product obtained is the index.

Index fund, as the name suggests, is a product that uses a specific index (such as CSI 300 Index, S&P 500 Index, Nasdaq 100 Index, Nikkei 225 Index, etc.) as the underlying index, and takes the constituent stocks of the index as the investment object, and builds a portfolio by purchasing all or part of the constituent stocks of the index to track the performance of the underlying index. In general, index** is designed to reduce tracking error and align the trend of the portfolio with the underlying index in order to achieve roughly the same yield as the underlying index.

There are four types of indices.

Closed-end index**. It can be traded in the secondary market, but cannot be subscribed or redeemed;

General open-ended index**. It cannot be traded in the secondary market, but it can be subscribed and redeemed;

Index ETFs**. ETFs can be traded in the secondary market, or subscribed and redeemed, but the subscription and redemption are in the form of a portfolio**;

Exponential LOF**. It can be traded in the secondary market, or it can be subscribed and redeemed.

The index will be based on a specific target, and the products invested by the index are generally the constituent stocks of the index. Index** seeks to achieve a return comparable to that of the index by investing in the constituent stocks and alternative stocks that make up the index, and the investment objective of the index** is to reduce the error between the index and the index. But there are also enhancements in the index, which track the index while also investing in others in order to achieve higher returns than the index.

Extended information: 1. To understand the index, we must first understand what an index is. In a nutshell, an index is a reference indicator compiled by an exchange or financial services institution to indicate the changes in the rise and fall.

At every hour of the trading day, there are always ups and downs of about 2,000 people, and it is easy for investors to understand the specific changes, but it is not easy to understand them one by one. To this end, some financial service institutions use their own business knowledge and familiar with the advantages of the market to compile the first index, which is publicly released as an indicator of market changes, reflecting the overall situation of the rise and fall of the market, and showing the average index of the change. Investors can then test the effect of their investment and use it to improve market trends.

2. The compilation of ** index, usually based on a certain year and a certain month, with the **comprehensive average** of this base period ** as 100, with the **** and the base period ** of each subsequent period, calculate the percentage of rise and fall, that is, the ** index of the period, which is announced immediately at the same time as the stock price changes. Due to the wide variety of listings, it is very troublesome and complicated to calculate the average number of all listings, so it is often necessary to select representative sample stocks (constituent stocks) from the listed stocks to calculate its index, which is used to represent the overall trend and rise and fall of the entire market.

3. The internationally famous indexes are: the Dow Jones Index of the United States, the Standard & Poor's Index, the Financial Times Index of the United Kingdom, the Nikkei Index of Japan, the Hang Seng Index of Hong Kong and so on.

An index refers to a product that uses a specific index as the underlying index performance.

1. Index** refers to a product that tracks the performance of the underlying index by taking a specific index, such as the CSI 300 Index and the S&P 500 Index as the underlying index, and at the same time taking the constituent stocks of the index as the investment object, mainly by purchasing all or part of the constituent stocks of the index.

2. Its purpose is mainly to reduce the tracking error. Users can purchase through banks, ** management companies and other channels.

3. The index ** is also known as the passive **type**, and the passive ** belongs to the **type**. The index is a trend that selects a number of ** according to a specific rule. What we usually call the ** trend refers to the trend of all the ** in the Shanghai Stock Exchange market.

Extended Materials. 1. About**.

1) **, that is, **investment**, refers to the sale of **shares, the funds of many investors are pooled to form independent assets, managed by **custodians, **managed by managers, and invested by the method of investment portfolio, a kind of collective investment method of benefit sharing and risk sharing.

2) Broadly speaking, ** refers to a certain amount of funds that are set up for a certain purpose. It mainly includes trust investment, provident fund, insurance, retirement, and various wills. From an accounting perspective, ** is a narrow concept that refers to funds with a specific purpose and use.

2. Classification of **.

1) According to whether the unit can be increased or redeemed, it can be divided into open and closed. Open-ended ** through banks, brokers, **companies to subscribe and redeem, **scale is not fixed. Closed-end has a fixed duration and is generally listed and traded on the trading venue.

2) According to the different organizational forms, it can be divided into company type ** and contract type **. It is established in the form of an investment company through the issuance of shares, which is established by the manager, the custodian and the investor through a contract, which is usually called a contractual type. According to the different investment risks and returns, it can be divided into growth, income and balance**.

According to the different investment objects, it can be divided into ****, bonds**, money market**, ****, etc.

As the name suggests, it is based on a certain index as the standard, and by taking the constituent stocks of the index as the investment object, people can build a portfolio by buying all or part of the shares of the index, so as to achieve the purpose of tracking the performance of the underlying index.

Generally speaking, the purpose of the index** is to reduce the tracking error, so that the underlying index in the relevant region is as close as possible to the trend of the investment portfolio, so as to achieve roughly the same rate of return as the underlying index.

There are four types of indices. The first is a general open-ended index**. It cannot be traded, but it can be subscribed to or redeemed. The second type is the closed-end index**, which is a type of index**, which can be traded, but cannot be subscribed or redeemed.

The third type is the index ETF base side fund, which can be understood as a combination of the first two, which can be traded, or subscribed or redeemed in the form of a combination of Qingxiang**. The fourth type is the index LOF**, which is similar to the third type, which can be traded, subscribed or redeemed, but does not need to be in the form of a combination of ** when subscribed or redeemed. It can be seen that these four types are all distinguished by whether they can be traded, whether they can be redeemed, and in what way they are redeemed.

<> "According to the investment direction, ** can be divided into bond, **, hybrid and currency**. According to the investment strategy, it can be divided into active** and passive**.

Active is a type of manager who uses technical and fundamental analysis to choose stocks blindly and choose the right time to achieve excess returns in the market.

The corresponding passive ** does not actively seek to achieve performance beyond the market, but links the rise and fall of the index, and selects a specific index as the tracking object, (such as the Shanghai Composite Index, CSI 300 Index, CSI 100, Dow Jones Industrial Index, etc.), which aims to achieve the same level of return as the index, and the passive ** is also known as the index**. There are many indexes, but they are mainly divided into broad-based indexes, which are not limited to specific industries, such as: CSI 300, SSE 50, etc.; 2. Industry indexes such as pharmaceutical industry index, new energy industry index, etc.

Many investment gurus have recommended indices**. Warren Buffett said in his 1993 letter to shareholders that by investing regularly in an index**, an ignorant amateur investor can often beat most professional investors.

Exponential Features:

1. The cost is relatively low.

Index** is relatively easy to manage, requires less management and time, and therefore has lower costs. Active rates are generally 1% and sometimes as high as 2%, while passive indexes are generally at a much lower rate.

2. Diversified investment and low risk.

Since the index is widely diversified by tracking the index, the fluctuation of a single ticket will not have much impact on the overall performance of the index, which to a certain extent, reduces the investment risk.

3. High performance transparency.

Through public information, investors know exactly what industry and what theme they are buying. By copying the index, so that the rise and fall of the two are highly consistent, investors can obtain the ** position through the constituents and weights of the underlying index.

4.The management process is less influenced by humans.

The investment process of the index is mainly the process of passively tracking the corresponding target index, rather than frequent active investment, with fewer human influence factors, and is not greatly affected by the departure and replacement of the manager.

From this point of view, the index** is suitable for investors who want to have a simpler, low-cost, stable and long-term investment.

In The Smart Investor, Graham advises the average investor to choose only 10 30 large, outstanding, low-asset-liability companies with a long track record of paying dividends to earn satisfactory returns.

Graham's idea was later carried forward by financial market technicians and became the world's most important investment index**. The so-called index ** is like compiling a Grignard 30 index for the 30 companies selected by Graham, each ** is public, and the weight (percentage) of each ** is also public. Anyone who buys all 30 companies with their money in hand as a percentage of each ** can get the same return as the Grignard 30 index before taking the shape.

Since the exchange has a minimum number limit on the single purchase of each **, the amount of funds of a single person may not be able to perfectly simulate the Grignard 30 index, so the index ** was born. In fact, everyone pools the money together, buys these 30**, and the income can be shared according to the proportion of funds. In the same way, if you buy the constituent stocks according to the composition ratio of the CSI 300 Index, it is the CSI 300 Index**; If you buy the constituent stocks according to the proportion of the CSI 500 Index, it is the CSI 500 Index**.