Financial channel> Banking financial news> Index funds are scheduled to vote, SSE 50, CSI 300, CSI 500, which one to choose?

Index funds are scheduled to vote, SSE 50, CSI 300, CSI 500, which one to choose?

Edit: Lisa Source: Rong 360 original Date: 2018-11-07

Summary:

Funds to vote for preferred index funds, SSE 50, CSI 300, CSI 500 how to choose?

This year, the stock market plunged a thousand miles. From the beginning of February, the downtrend channel was opened, and the market fell and fell. The market fell from more than 3,500 points at the beginning of the year to more than 2,600 points. In October, it even bottomed out to more than 2,400 points. Affected by this, this year's investors and the basic people's investment income is also very bleak, the proportion of making money is very low, the year's loss of 20%, 30% is normal, even the fund's fixed investment can not escape.

  How long does the fund have to vote?

Rong 360 financial analysts received a lot of advice from investors. My fund has been investing for a year. Not only did it not earn a profit, but even lost more than 20%. Do you still have to insist? The answer is yes. If you only insist on investing for one year, you can't persist, or advise you to give up the vote.

  The fund must make a long-term plan for the fixed investment. How long does it take to be long-term? At least 5 years.Since the stock market has always been a bull and bear, and it is a short bear, it is best to go through a bull market.

According to the history of the stock market, A shares will complete a cycle of bulls and bears in 5-8 years. The last bull market was in the first half of 2015, and the last time was in 2007, of which 2007 was considered a "big cow", and the increase was even more Big, rising time is also longer.

After a round of bulls and bears alternate, the stock market often has a long period of pain, that is, low consolidation. For example, from the beginning of 2010 to mid-2014, for four and a half years, the stock index is slowly falling, if you are here. If you insist on investing for a period of time, you will only lose money if you persist for 4 and a half years. However, as long as it persists for a while, it will usher in a moment of gloom, that is, the bull market in the second half of 2014 to the first half of 2015.

Five years is not an exact deadline, but you have to plan for it. If you encounter a bull market soon, you may reach your profit target in a year and a half, and you will be able to quit soon.

  How to choose a fund? Generally speaking, many people choose index funds, especially wide-finger funds. Why?

First of all, whether it is domestic or foreign, taking the time to lengthen, the securities market is upward, which is why the index fund has long been optimistic. Active funds are too focused on timing, easy to miss opportunities, and fund managers often change, performance is not sustainable. Index funds are passive and have nothing to do with the ability of fund managers. They mainly refer to a basket of stocks and are not affected by human factors.

Second, index funds have low rates and are more transparent. Index funds have nothing to do with the ability of fund managers. As long as they focus on the underlying index, they do not need to spend a lot of time and energy to select investment targets, and they do not need to adjust positions frequently, so the cost is relatively low.

 In the long run, active funds are hard to beat index funds that represent market megatrends.

Therefore, targeting the index, an index fund that does not depend on the managerial ability of the fund manager and can maintain long-term stability is the best choice for investors to pursue the average market return. This is why everyone decided to vote for an index fund.

  Which stocks are represented by the SSE 50 Index, the CSI 300 Index and the CSI 500 Index respectively?

For ordinary white investors, Rong 360 financial analysts recommend that you choose a wide-finger fund.

Our common wide-finger funds include SSE 50, CSI 300, CSI 100, CSI 200, CSI 500, CSI 1000, SME Index, GEM, etc. The wide-finger fund contains more types of industries, coverage. Wide, can effectively hedge the industry risks.

Compared with the wide-finger fund, the narrow-finger fund, also known as the industry fund or the theme fund, concentrates on certain specific strategies, styles, industries, and topics, such as the energy industry, the pharmaceutical industry, the financial industry, Consumer industry, etc.

Narrow-finger funds need to judge the development trend of the whole industry because they focus on a certain industry or theme, and the fluctuations and risks are greater. But for small white investors, the lack of ability to judge the trend, so it is best to choose a more stable wide-finger fund.

Among the wide-finger funds, the SSE 50, the Shanghai and Shenzhen 300, and the CSI 500 are the most representative. What are the three major indices?

  1. SSE 50 Index

The SSE 50 Index is a sample of 50 stocks with the largest scale and good liquidity of the Shanghai Stock Exchange. It is basically a leading company in the industry, such as major banking stocks, insurance stocks, securities stocks, and petrochemical stocks. There are also well-known leading stocks such as Kweichow Moutai, Poly Real Estate, China Heavy Industry, and Qingdao Haier.

The size of the leading stocks tends to be relatively large, and the trend is relatively stable. If such stocks want to rise so much, they will have huge funds to enter the market. Similarly, there will be huge funds to exit. Such stocks are not personal, and even a single institution can hardly manipulate stock prices.

 2. Shanghai and Shenzhen 300 Index

The CSI 300 Index is a selection of 300 stocks on the Shanghai Stock Exchange and the Shenzhen Stock Exchange with large scale, good liquidity and good operating conditions. The coverage is wider than the SSE 50. In fact, from the constituent stocks, the stocks in the SSE 50 Index are also in the Shanghai and Shenzhen 300 Index, so the Shanghai and Shenzhen 300 Index constituents include the SSE 50 Index constituent stocks.

The CSI 300 Index contains a large number of stocks and is a very comprehensive index. The companies with the strongest A-share profitability are basically included. The sample stocks are of excellent quality and represent the Chinese stock market index. "Barometer" shows its position in the stock index.

  3. CSI 500 Index

The sample stock of the CSI 500 Index is composed of 500 stocks with the highest market capitalization, excluding the stocks of the CSI 300 Index (ie the top 300 stocks), which comprehensively reflects the stock price of the A-share market. .

From the constituent stocks, the CSI 500 Index and the CSI 300 Index do not have coincident stocks, and the SSE 50 Index is even worse.

In addition, we often see the CSI 100 Index, the CSI 200 Index, and the CSI 1000 Index. Which stocks are included?

The CSI scale index is an index compiled according to the market value of the listed company. The CSI 100 is 100 stocks in the top 100 market capitalization, the CSI 200 is 200 stocks with a market value of 101-300, and the CSI 500 is 500 stocks with a market value of 30-800. Stocks, CSI 1000 is a stock of 1,000 stocks with a market value of 801-1800.

Shanghai and Shenzhen 300=CSI 100+ CSI 200.

This way everyone understands it.

  How to choose SSE 50, CSI 300 and CSI 500?

After understanding the composition of the SSE 50 Index, the Shanghai and Shenzhen 300 Index, and the CSI 500 Index, the next step is how to choose.

A simple and rude method is to see if it is cheap enough, mainly to look at the price-earnings ratio PE. The price-earnings ratio is the ratio of stocks per share price to earnings per share. The price-to-earnings ratio is too high. It represents a bubble in stock prices, the value is overvalued, the price-to-earnings ratio is too low, and the stock price is undervalued. The potential for future stock price rise is greater.

At present, the PSE of the CSI 500 is 19.05 times, which is close to the lowest level in history. The current valuation is very low. In other words, the CSI 500 Index has been left out by investors, but over time, the index with high valuations is making less and less money. The CSI 500 Index, which has a low valuation, will cause investors. Attention, a high probability can rise.

CSI 500's average P/E ratio for the past 10 years

Of course, when the investment sentiment can change is an unknown number, maybe half a year, maybe longer, it depends on whether you have patience. Since the fixed investment time is more than 5 years, we are confident that during the period, the CSI 500 Index will make money.

If the investment style is conservative, then the SSE 50 Index and the Shanghai and Shenzhen 300 Index are more stable. Since the Shanghai and Shenzhen 300 Index constituents cover the SSE 50 Index constituents, the trend of the two indices is very similar. The SSE 50 is more stable, but overall. The difference is not big.

Finally, Rong 360 financial analysts suggested that the fund can vote for several types of funds at the same time, so it can be matched with the CSI 500 Index and the Shanghai and Shenzhen 300 Index, or with the CSI 500 Index and the SSE 50 Index.

Zero-based learning fund is scheduled to vote, you can go to the WeChat public account: financial notes (rong360licai), reply to the "funds", view related content.

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