Avenue to Jane Index Fund or Equity Fund Development Highlights
Source: China Net Finance Original title: Avenue to Jane Index Fund or Equity Fund Development Highlights The development of equity funds has been elevated to new heights.
At the beginning of July, Yi Huiman, the chairman of the China Securities Regulatory Commission, led a team to investigate at CICC, and chaired a forum for securities and securities operating agencies.
The meeting requires that we grasp the feasibility and focus on promoting the development of equity funds; we must work hard to increase the proportion of equity funds, improve research capabilities, enrich product types, improve investment and consultation levels, optimize investment structures, and make equity funds become capitalAn important long-term professional investor in the market.
This statement actually implies the biggest crux of the current development of the public fund industry, namely reorganization, fund companies focus on the issue of fixed income products, equity fund layout is insufficient, and development is hindered.
Some officials believe that the long-term rapid development of index funds is expected to become the highlight of the development of equity funds.
Index funds have entered the fast track to development. Since the first index fund was launched in 2002, it has the advantages of simple, clear, cheap, and instrumental products. Index funds have grown strongly in the Chinese market and their market share has continued to rise.
According to statistics from CITIC Securities, as of the end of 2018, the market share of domestic index funds has exceeded 14% of the entire market of public funds (non-monetary).
In the second quarter of this year, in the context of severe stock market volatility and the net redemption of most funds, the size of index funds increased without decline.
The Galaxy Securities Fund Research Center statistics show that in the second quarter, standard subscription stock funds, enhanced index stock funds, stock ETFs and stock ETF linked funds all experienced net purchases to varying degrees; of which, stock ETFs and ETF-linked funds net purchaseIn total, there were 20.5 billion and 22.3 billion.
In fact, in the past four years when the market fluctuated violently, the stock market value of stock ETFs has been increasing as a whole, and its value as an important allocation tool has continued to stand out.
The Galaxy Securities Fund Research Center statistics show that the share holding value of stock ETFs from 0 on June 30, 2015.
37% increase to 0 on June 30, 2019.
94%, market share increased by 154.
Huatai Securities Financial Engineering Analyst Huang Xiaobin also reported in the report that the size of internal index fund assets has increased rapidly since 2009. In addition to the participation of a large number of individual investors, the size of index funds held by institutional investors has also increased more than 10 times.
As of June 2019, there are more than 500 index funds in the Shanghai and Shenzhen markets, and the total scale of assets under management is about 700 billion, of which institutional investors hold about 300 billion.
Five great reasons why investors’ index funds are so sought after?
Feng Jiarui, a financial engineering analyst at Haitong Securities, believes that the reasons are as follows.
First, risk diversification.
Index funds generate investment portfolios by purchasing all or part of the index’s shares to track the performance of the underlying index.
In active funds where there may be some heavy stocks, index funds are more decentralized, which can more effectively achieve risk management and resist the “black swan” incident.
First, get the average market return.
It is not easy to overcome the index by selecting individual stocks. In the 162 months from the end of 2004 to 2018, only 46 per month.
The 37% stock yield is higher than the CSI All-Share Index.
Therefore, for ordinary investors, indexed investment can win the average market returns while controlling risks more effectively.
Again, the performance is outstanding and stable.
Index funds are easy to understand and highly regulated to create the ultimate alternative.
It is less affected by the personal investment style of the fund manager, and there is no style drift phenomenon, which ensures the stability and continuity of the investment style.
Fourth, the rates are low.
In the domestic market, the average rate of active funds is 1.
75%, index funds are limited to 0.
77% can effectively help investors save costs.
Finally, avoid the tedious, professional fund selection process.
Choosing a fund requires investing a lot of manpower and material resources and conducting in-depth and comprehensive research.
This is an almost impossible task for ordinary investors.
Indexed investment regulations avoid these tedious and professional processes, simplify fund investment into judgments on market fluctuations, and greatly reduce the investment threshold.
In addition, if investors do not want to choose the time, they can choose simple and effective methods such as fixed investment.
Index Funds have a bright future As the Index Funds are striding forward, Tianhong Funds has launched the Index Funds Tool Book-“Investment Fundamentals of Index Funds” in response to market demand.Hong Lei, president of the China Securities Investment Fund 上海夜网论坛 Industry Association, wrote a preface to the book.
He pointed out in the foreword that as of the end of 2018, the market share of domestic index funds has exceeded 14% of the entire market of public funds (non-monetary), but cited the 36% market share of US index funds.There is room for development.
Hong Lei is very optimistic about the development prospects of China’s index funds.
He believes that, first of all, from the perspective of the investment environment of the basic market, with the advancement of the supply-side reform of the Chinese capital market, index funds will face a better investment environment, usher in greater development, and better serve the real economy.
Fundamentally speaking, from the demand side, supervision actively promotes the improvement of the pension system and guides the allocation of long-term allocation of funds into the market. The investment and allocation needs of index funds are urgent.
Finally, from the perspective of the supply side, there is room for research, optimization, and improvement in the tracking of investment targets for index funds. Public funds should strengthen professional research in the field of indexed investment, seek innovation, expand investment scope, optimize investment strategies, andServing and matching the needs of investors, expanding and strengthening the index fund business, and nurturing the real economy.
Just as Hong Lei said, “An Index Fund Investment Brief” another framework system reference book can also give a good balance of professionalism, substitution and practicality. I believe that Xiaobai investors, institutional investors, and fund practitionersEquals can be taken from the book.
This is also the original intention of Tianhong Fund.
As early as 2015, Tianhong Fund began to strategically deploy the index fund business and launched the Tianhong Index Fund series. At present, it has formed a product matrix consisting of 11 index funds, covering broad-based indexes, industries and themed indexes, covering main boards, small and mediumBoard, gradual and non-cyclical industry, value and growth style.
Since the launch of the Tianhong Index Fund Series for more than three years, it has served more than 10 million customers and led to its advantages in Internet finance. Adhering to inclusive finance, the proportion of individual investors has reached 99.
In the future, Tianhong Fund and Ant Financial will work together to become China’s largest index fund service provider, especially to become China’s largest, retail-oriented, equity investment service provider featuring index funds.