Have a thought, why choose exponentially enhanced products? I think there are no more than two investment purposes: better investment tools. In this case, investors have obvious investment views on the future trend of the broad-based index. For example, they are more optimistic about the future growth style of small and medium-sized indexes. The more suitable broad-based index is the CSI 500. , then choosing the enhanced product of the CSI 500 Index is a tool to better express its investment views. In addition to the beta return of the index, it can also obtain the alpha return. Excess return as a margin of safety; in this case, investors themselves do not have a clear investment view on future market styles, etc., and excess return can be used as a wrong margin of safety. For example, the excess return of CSI 1000 has an annualized 13%. Even if the initial investment view is wrong, there is still a 13% return as a margin of safety. Private placement refers to higher excess returns, and this margin of safety is higher. If the investment point of view has been verified by the market, the superposition of this β+alpha return will have a higher excess return. The purpose of these two kinds of investment is to look for index products with higher excess returns in essence, but the focus will be somewhat different. For the former, the more important thing in determining investment returns is β income, that is, after seeing the trend of the index, excess returns α, is just the icing on the cake. The former examines not only excess returns, but also pays more attention to tracking errors. The latter is more about looking for a relatively high excess return as a margin of safety. Generally speaking, a 20% drop in the index in a year is already a big drop. If there is an excess return of more than 20% as a margin of safety, then In theory, there is basically no loss of money. Therefore, for the latter, more attention will be paid to excess returns, and the tolerance for tracking errors is relatively high, allowing some deviations. Of course, this division of investment purposes is not an absolute distinction of 0-1, and there are many situations in between. $ Shenwan Lingxin CSI 500 Index Enhancement (F002510)$ $Western Profit CSI 500 Index Enhancement A (F502000)$ $ Wanjia CSI 1000 Index Enhancement A (F005313)$ There are 8 discussions on this topic in Snowball, click to view. Snowball is an investor’s social network, and smart investors are here. Click to download Snowball mobile client http://xueqiu.com/xz]]>

?n=%E5%BE%AE%E7%A7%AF%E5%88%86%E9%87%8F% Calculus Quantitative Price Investment

Have a thought, why choose exponentially enhanced products? I think there are only two investment purposes:

better investment tools

In this case, investors have obvious investment views on the future trend of the broad-based index. For example, they are more optimistic about the future growth style of small and medium-sized enterprises. The more suitable broad-based index is the CSI 500, then choosing to choose the enhanced product of the CSI 500 index is a A tool that better expresses its investment views can obtain alpha returns in addition to the beta returns of the index.

excess returns as a margin of safety;

In this case, investors themselves do not have a clear investment view on the future market style, etc., and excess returns can be used as a margin of safety for misunderstandings. For example, the excess return of CSI 1000 has an annualized 13%. Even if the initial investment view is wrong, there is still a 13% return as a margin of safety. Private placement refers to higher excess returns, and this margin of safety is higher. If the investment point of view has been verified by the market, the superposition of this β+alpha return will have a higher excess return.

The purpose of these two types of investment is to look for index products with higher excess returns in essence, but the focus will be somewhat different. For the former, the more important factor in determining investment returns is the beta return, that is, the trend of the index, the excess return. α, is just the icing on the cake. The former examines not only excess returns, but also pays more attention to tracking errors.

The latter is more about looking for a relatively high excess return as a margin of safety. Generally speaking, a 20% drop in the index in a year is considered a big decline. If there is an excess return of more than 20%, as a margin of safety, then In theory, there is basically no loss of money. Therefore, for the latter, more attention will be paid to excess returns, and the tolerance for tracking errors is relatively high, allowing some deviations.

Of course, this division of investment purposes is not an absolute distinction of 0-1, and there are many situations in between.

$ Shenwan Lingxin CSI 500 Index Enhancement (F002510)$ $ Western Profit CSI 500 Index Enhancement A (F502000)$ $ million CSI 1000 Index Enhancement A (F005313)$

This topic has 8 discussions in Snowball, click to view.
Snowball is an investor’s social network, and smart investors are here.
Click to download Snowball mobile client http://xueqiu.com/xz ]]>

This article is reproduced from: http://xueqiu.com/4778574435/232041179
This site is for inclusion only, and the copyright belongs to the original author.