The Study Of Index Fund Investing Time And Strategy

Index investment is a theory goaling to obtain a specific market benchmark earnings based on efficient market and random walk theories. Index fund is a kind of indexing investment products tracking index to grow up with the market together. It is a new developed invest fund and financial derivative tool with low cost, broadest diversification, low tax and clear monitor, etc.Ordinary investors in China make up a disadvantaged minority in the stock market. They are principal sectors of the market with deficient in relative knowledge and capital capability. The dissertation tries to find out index fund investing opportunity and strategy to help ordinary investors to obtain the basic earnings.The dissertation has both of modeling analysis and historical data analysis. First we conform a price model to simulate index prices for several years which includes three parts: value, behavior and random term. It simulates prices in different markets. We use the difference between value and price as the first criterion and MACD, RSI indexes as assistant criterions, contrarian effects also to find out the investing moments. This simulation is repeated several times to get a statistic result of the invest earnings. Besides, Hushen stock 300 historical prices from 1990 are collected to test the criterions with PE measuring index value. The dissertation compares the two results and tries to find out any useful suggestion.The dissertation has five chapters. Chapter 1 is an instruction of research background and relative research achievements. Chapter 2 introduces and analyses index fund. Chapter 3 compares and analyses different invest methods. Chapter 4 is the core part, which does analysis of invest methods from simulation and historical data. Chapter 5 is the conclusion of the whole work, explains the research results and gives suggestions.