The pharmaceutical industry is an excellent industry that makes money by nature. This is because everyone can't live without life, old age, illness and death. Medicine is the basic demand of human beings, and this demand will not decrease because of the economic downturn. In most countries, the pharmaceutical industry is a good industry in terms of decades of time span.
The growth in our domestic pharmaceutical industry is relatively prominent. From 2004 to 2018, the Shanghai Composite Index rose 147%, but the pharmaceutical index rose 1007%. The pharmaceutical industry is one of the industries with the best long-term returns.
Investing in the pharmaceutical industry is a good choice, but what are the excellent pharmaceutical industry index funds? What funds should we invest in?
At present, the industry index funds in our country are still in the early stage of development. The number and scale of industry index funds are not comparable to those of broad based index funds, but there are also many, and only a few are available for our ordinary investors to choose. When choosing index funds, we can choose the products of fund companies with relatively large scale and good operation. Such funds are less risky and more reliable. So we can follow the following two points when selecting:
1. The size of the selected index funds is more than 100 million.
2. Check the long-term returns of index funds and select the ones with better returns.
Why choose fund products with a fund size of more than 100 million? That is because if the fund is small, it may be liquidated in the future. Most of the reasons are that the fund company does not operate well or attaches no importance to it. Generally, the fund size is below 50 million yuan. When the fund company has high maintenance costs but low returns on smaller funds, the fund company may apply to the CSRC to liquidate the fund. During liquidation, the Fund will compulsorily redeem the Fund units according to the net value of the Fund on a certain day. We will not lose money when liquidating the fund, but there is still a risk that our investment may be forced to be interrupted, so we will try to avoid too small funds.
When selecting index funds in the pharmaceutical industry, we chose index funds with a scale of more than 100 million. These index funds are few and can be easily found in financial management software, such as snowball, Ping An Securities and other software.
From the perspective of fund rate, the product management rate of GF Fund is lower and has more advantages, which can be given priority. At present, the domestic pharmaceutical industry is still in the stage of development, and the future prospects are good, but it is still because the history of our domestic stock market is not long, and because of the rapid development of the industry, the future variables are relatively large, which is also a common risk of investment in the pharmaceutical industry. However, the pharmaceutical industry has performed well in countries around the world. As long as we buy when the index is undervalued, the future earnings will be good.
