Definition of Index Fund:
A fund with a certain index as the investment target, passive investment
Advantages of index funds:
- Extinction of human nature: avoid mouse warehouses and profit operations; customer service greed and fear, avoid "chasing ups and downs"
- Immortal: avoid the risk of "black swan", constantly have new companies to supplement, always alive
- Last laugh: As long as the economy develops, the index will rise and become a 10% earner
The main types of index funds:
- A shares: RMB common stock (China's mainland common market, such as Moutai, Gree), the main 5 major indexes include
- Shanghai Stock Exchange 50 Index: The 50 leading companies with the most market influence in the Shanghai stock market
- CSI 300 Index: Shanghai and Shenzhen exchanges, 300 large listed companies (the most influential and most important index fund in China)
- China Securities 500 Index: 500 small and medium-sized listed companies, 500 after Shanghai and Shenzhen 300
- ChiNext Index: Small companies that specialize in investing in ChiNext
- Dividend Index: An index fund dedicated to investing in companies with high dividends
- Hong Kong stocks: Tencent is listed in Hong Kong, H-share index (the largest domestic company listed in Hong Kong), Hang Seng Index
- US stocks: S&P 500, Nasdaq 100
Both A shares and H shares are domestic companies. If they choose to be listed in China, they belong to A shares. If they choose to be listed in Hong Kong, they belong to H shares.
The Hang Seng Index is the 50 largest companies investing in the Hong Kong stock market. The main constituent stocks include China Mobile, Industrial and Commercial Bank of China, China Construction Bank, Hang Seng Bank, Tencent, PetroChina, etc.
QDII funds: qualified domestic institutional investors
RMB depreciation: configure QDII funds to hedge risks
Why Hong Kong stocks?
- Hong Kong stocks have the closest relationship with China. Tencent, BYD, and Link are all listed and traded in Hong Kong
- The Hong Kong dollar is pegged to the US dollar to diversify the risk of RMB depreciation
- The Hong Kong stock market has been multiplier and has been in existence for more than half a century