There are many types of index-based strategies, and different investors tend to choose different styles of strategies due to different risk appetites and investment habits. From September 30, 2019, through specific indices (taking CSI 100 and ChiNext Index as examples), the strategies will be simulated and the returns will be broadcast daily, so that you can grasp the main logic of the three strategies and the simulated returns, help you better choose the investment strategy that suits you, and understand the charm of index investment!
Each investment strategy is suitable for different market environments, the purpose of our sharing strategy is to facilitate the search for their own investment methods, simply put, the regular investment strategy is suitable for bear market and shock market, 28 rotation is suitable for the unilateral market (bull market or bear market), and buying in batches is suitable for the shock market.
1. Regular investment strategy
Regular investment refers to investing a fixed amount of money in a designated open-end fund at a fixed time. Compared with regular investment, the one-time investment return may be high, but the risk is also great. Because it avoids the influence of investors' subjective judgment on the timing of entering the market, the risk of regular investment is significantly reduced compared with stock investment or single investment of funds.
When choosing the varieties of regular investment index funds, there are generally two ways to determine: the first is to choose a high elasticity and high growth index, which generally has a higher annualized yield, the greater the volatility, and a larger rebound in the bull market, so the regular investment yield is higher, and the gem represents growth and is the rebound pioneer; CSI 100 is a representative of the "core blue chip" index with high yield and high dividends, which is the target of Nuggets China's core assets.
Specific steps:
Taking September 30, 2019 as the first day, from the first day (including the first day), a fixed amount of 1,000 yuan will be invested before the close of the last trading day of each week, and the fund shares that can be purchased with 1,000 yuan invested in the current period will be calculated according to the closing point of the index, and the cumulative number of investment periods, cumulative investment amount, current market value of the portfolio and cumulative rate of return of regular investment will be updated after the close of each working day. The above indicators are calculated in three cases: only buying CSI 100, only buying ChiNext index, and investing 1:1 in CSI 100 and ChiNext index.
As of today, the CSI 100 Regular Investment Portfolio has invested a total of 231 periods, with a cumulative investment amount of 231,000 yuan, the current market value of the portfolio is 189644 yuan, and the cumulative rate of return is -17.90%.
The GEM designated investment portfolio has invested a total of 231 periods, with a cumulative investment amount of 231,000 yuan, and the current market value of the portfolio is 173931 yuan, with a cumulative rate of return of -24.71%.
The CSI 100 and ChiNext Index (1:1) regular investment portfolio has invested 231 periods with a cumulative investment amount of 231,000 yuan, the current market value of the portfolio is 181787 yuan, and the cumulative return rate is -21.30%.
Note: The data comes from Wind, and the return on investment = current portfolio market value / cumulative investment amount - 1.
2. Super 28 Rotation
If you don't know the Super 28 Rotation Strategy, you can click to see the article "Introduction to the 28 Rotation and Super 28 Rotation Strategy" for details!
The conventional large- and small-cap rotation strategy (i.e., 28 rotation) is a timing strategy for large-cap rotation based on the price judgment trend of the CSI 300 and CSI 500 Index: "two" represents large-cap heavyweights (corresponding to the CSI 300 Index) accounting for about 20% of the number, and "eight" represents small- and medium-cap stocks (corresponding to the CSI 500 Index) accounting for about 80% of the number. We have improved the conventional over/under rotation strategy and developed an "enhanced version of the over/under rotation strategy", which specifically replaces the CSI 300 and CSI 500 with the CSI 300 and CSI 500, the representative of China's core assets, and the Growth Pioneer ChiNext Index, respectively, to build a new 28 rotation strategy, which has obtained higher excess returns and higher winning rates.
Specific steps:
We take 1,000 yuan as the initial capital and the closing price of the index on the first 20 trading days as the benchmark to calculate the rise and fall of the CSI 100 and ChiNext index in 20 trading days. At the same time, in order to better simulate the actual situation, we set the minimum position period to 5 trading days, that is, if you hold CSI 100 or ChiNext for no more than 5 trading days, even if the strategy sends a position adjustment signal, you still insist on holding without rebalancing.
Daily statistics on the net value and cumulative income of the portfolio. The investment started on September 30, 2019, and the position adjustment signal was issued after the close of trading on April 15, 2024, and the CSI 100 was transferred from cash to CSI 100 on April 16, and the cost was calculated according to the closing point of the index. There is no rebalancing signal after today's closing, and there will be no operation on the next trading day. As of April 17, 2024, the cumulative return of the portfolio is: 19.23%.
Data source: wind, super 28 round investment rate of return = current market value of invested funds / 1000-1, see the above text introduction for the calculation rules of rise and fall. As of today, the 20-day range is from March 19, 2024 to April 17, 2024, based on the closing price.
3. Batching strategy
The batch buying method is a more conservative investment method, in the case of not having a greater grasp of the current market or no continuous source of cash flow, it is best not to buy at once, you can use the strategy of buying in batches, which is a good choice for most investors who do not have the ability to accurately choose the time.
The current valuation of the CSI 100 Index is 10.94 (September 30, 2019), if the index falls by 20%, the valuation is 8.8, and the historical quantile is 12%, and the current valuation of the ChiNext Index is 52.63, if the index falls by 30%, the valuation is 36.8, and the corresponding historical quantile is 15%, which are relatively historical lows, so we estimate that the threshold for the decline of the CSI 100 Index is about 20%, and the threshold for the decline of the ChiNext Index is 30%.
Specific steps:
Starting from September 30, 2019, the CSI 100 Index and the ChiNext Index will be invested in batches. First of all, take CSI 100 as an example, assuming that the total investment amount is 1000 yuan, divided into 300, 300 and 400 yuan for investment, the first investment is 300 yuan, the CSI 100 index falls by 10%, the investment is 300 yuan, and then it falls by 10% (that is, it falls by 20% relative to the selected base period), and the remaining 400 yuan is invested; in the same way, assuming the total investment amount is 1000 yuan, divided into 300, 300 and 400 three coins for investment, the first investment is 300 yuan, and the ChiNext index falls by 15% When investing 300 yuan and falling by 15% (i.e., 30% relative to the selected base period), invest the remaining 400 yuan to calculate the returns of the two index batch strategies.
According to the daily income statistics, since September 30, 2019, the investment return rate of CSI 100 in batches is: -4.02%, and the return on investment in batches of the ChiNext Index is: 3.13%.
Note: The data comes from Wind, and the return on investment = (the current market value of the invested amount + the uninvested funds)/1000-1.
Risk Warning: This information is for reference only and does not constitute promotional materials, investment advice or guarantee for any of the Company's business, and is not used as any legal document. The fund manager undertakes to manage and use the fund assets in good faith, diligence and due diligence, but does not guarantee that the fund will be profitable, nor does it guarantee the minimum return. When purchasing a fund, investors should read the fund's fund contract and prospectus and other legal documents in detail to understand the specific situation of the fund. The performance of other funds managed by the Fund Manager and the past performance achieved by its investment staff are not indicative of their future performance and do not constitute a guarantee of the performance of the Fund. Caution should be exercised when investing in funds.