Who will dictate the stock selection rules for the index?
Developed by the stock exchange or financial service institution
Index points:
refers to the weighted average of the stock prices behind the index.
Simply put, the points can be directly regarded as an average stock price of the stocks behind the index.
Why compile index points?
Checking the price changes of many stocks one by one is time-consuming and laborious. Through the index, it is very convenient and quick to understand the overall average price change of a basket of stocks included in the index.
When looking for a certain index, why are there multiple different index funds?
This is because there are many index funds tracking the same index, which are developed by different fund companies.
How to choose an index fund that tracks the same index?
When we choose, we choose products from fund companies with larger scales, lower fees, and smaller tracking errors, which are less risky and more reliable.
What are on-market funds and over-the-counter funds?
On-exchange funds are funds that can be traded on the stock exchange, and over-the-counter funds are funds that can be redeemed directly on the fund trading platform
What is a feeder fund?
This is a special product developed by fund companies. Some investors hope to invest in on-market funds through over-the-counter channels. Fund companies have developed feeder funds to connect from off-market to on-market funds to facilitate ordinary investors to apply for redemption. Feeder funds are also index funds.
How do you make a profit from buying and selling stocks?
There are two ways to profit: 1. Capital gains 2. Dividends
Dividend index is a good old-age care product.
Generally, cash dividends are distributed every year to generate cash flow.
Cash flow can provide us with an additional income and improve our elderly life.
The Hang Seng Index
selected the 50 largest large companies in the Hong Kong stock market.
The income is stable and the valuation distribution is reasonable.
