The biggest risk of purchasing active funds is the fund manager. His level is uncertain, and his character is even more uncertain. In this era, it is hard to say how popular people are in the face of interests. The disadvantage of active funds is precisely the advantage of index funds. Because index funds do not need to compete for personality and do not need to bear the risk of uncertainty.
What is an index? The purpose of the invention index is to have a most intuitive indicator that can measure the overall level of a collective. For example, which class is the best in a grade? Just calculate and compare the average score of each class in this grade, and you can know which class has the best score. This average score is like an index. The stock price index is an indicator used to describe the changes in the overall price level of the stock market.
How is this index determined? Usually, the overall price level of the stock on a certain day is determined as the benchmark level of the index. This day is called the benchmark date, and then the overall price of the stock on this day is set a benchmark point or benchmark point, for example, 100 points. In the future, the basic points of the day will be 100 points. In the future, when we say that the stock has gone up or down, we will compare it with this 100 points.
We only need to know the changes of the stock index to quickly understand the overall rise and fall of a stock market, so we generally say that a stock market has risen or fallen, which means that the most important index in the stock market has risen or fallen. For example, when we say that the US stock market has risen, it generally means that the most representative S&P 500 index has risen. Other countries have the most representative indexes, such as the Nikkei 225 index, the German dex30 index, the British FTSE 100 index, and the Hong Kong Hang Seng index.
What are the representative indexes in China? The most famous is the famous Shanghai Stock Exchange Index, which measures all the stock prices listed on the Shanghai Stock Exchange, that is, the overall level of all students in the large class of Shanghai Stock Exchange. The relatively important large companies in China are generally listed on the Shanghai Stock Exchange, while private enterprises, especially small ones, are generally listed on the Shenzhen Stock Exchange. As a result, the stock market value of the Shanghai Stock Exchange is far greater than that of the Shenzhen Stock Exchange, so shareholders generally regard the Shanghai Stock Exchange Index as the most important indicator of the rise and fall of the market. The Shenzhen Composite Index measures the overall level of students in the large class of Shenzhen Stock Exchange.
