Many novices studying financial management don't know what the Shanghai Stock Exchange 50 means and what it mainly invests in. Here is a brief explanation of the basic knowledge of SSE 50.
The Shanghai Stock Exchange 50 Index is an index fund specialized in investing in large enterprises. The Shanghai Stock Exchange 50 Index selects the 50 largest enterprises in Shanghai Stock Exchange, and this index is specialized in investing in large enterprises. The majority of the constituent shares of SSE 50 are large companies related to people's livelihood, which are generally controlled by the state or among the leading companies in the industry. SSE 50 is a relatively famous and typical index for investing in large cap stocks. At present, there are many index funds tracking SSE 50. Among them, Huaxia SSE 50ETF is more famous in the market. Yi Fangda, who is more famous outside the court, is listed on the Shanghai Stock Exchange 50.
So many index funds do we choose this way? When we select the fund company products with larger scale, lower rate and smaller tracking error, the risk is lower and more reliable. For ordinary investors, we only need to buy one for each index.
What are OTC funds and OTC funds? OTC and OTC are different investment channels. OTC funds are funds that can be traded in the stock exchange, while OTC funds are funds that can be directly traded on the fund trading platform for redemption. We can use stock trading software to directly buy and sell OTC funds.