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)$
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