Index Funds & Empirical Study On Index Stock Investment

Index Funds is an important financial product and the theories of indexinvestment are one of the most challenging works in finance research. The aim of thedissertation is to review the recent evolving process of theories on index funds,analyze the obstacle to China's index fund's development and put forward GeneticAlgorithm to the investment Decision-making. Finally, the method is applied to theShanghai Stock Exchange, at the same time, we adopt Shangzheng 180 as theobjective index.In this thesis, we associated the genetic algorithm with two traditional methods,the primary analysis and the technique analysis. We use the highly nonlinear andhidden parallelism character of the Genetic Algorithm, and define the chromosomeand fitness. We also design the reproduction, the crossover and the mutation scheme.At last, we improved the algorithm. The algorithm will give one kind investmentconstitution and its fitness as the result.We studied the Shanghai Stock Market and put the algorithm into use. We wishthat we can give a new forecasting method which is effective to the future marketthrough this simulation, especially when it comes to nature.