How to invest in a novice tech sector fund

The tech sector is not without its long slopes and thick snow, and is also recognized as a long-term quality track in the market. There are numerous fine-molecular industries in the technology sector that can tap into a large number of investment opportunities. I am here to organize the technology sector fund how to invest, for your reference, I hope you have gained in the process of reading!

Technology plate segmentation industry

1, computer

The computer industry can be divided into computer equipment and computer applications.

The upstream industry of the computer equipment industry consists of raw materials such as plastics, chips, resistor sheets, and light guide plates. Currently, the upstream manufacturers with greater influence are mainly Hikvision, Focus Media, ZiGuang, the Great Wall of China and other manufacturing enterprises. The above enterprises are large in scale, stable in development, with sufficient supply and stable quality. From an overall perspective, the stability of upstream enterprises is favorable to the development of the industry. At the same time, with the development and growth of domestic upstream enterprises, so that the overall trend of purchasing prices of parts and components downward trend, will be conducive to improve the competitiveness of domestic computer companies. There are many sales channels for computer equipment, such as major supermarkets, electronic equipment stores, e-commerce platforms and so on.

Secondary industry computer equipment corresponding to the index has the CSI computer, technology leading, CSI technology 100, emerging technology 100, OTC index funds have Tianhong CSI computer index, Huabao technology leading ETF linkage, Harvest emerging science and technology 100 ETF linkage, the active industry funds have the Huashang computer industry quantitative stocks, etc.;

Secondary industry computer applications Corresponding indexes have Shenzhen Science and Technology Index, CSI Technology 50 Strategy Index, active industry funds have Damo Technology Leading Mix, etc.

2, electronics

The electronics industry is the basic support of China's information industry. The total output value of China's electronics industry accounts for about one-fifth of the electronic information industry, and its upstream and downstream industrial chain covers a wide range.

To a macro point of view, from materials to finished products in the process mainly contains the upstream raw materials, chemical products, production equipment. Midstream is mainly electronic components industry, according to the work is whether the need for external energy source, electronic components can be divided into two categories of active and passive components. The passive components include capacitors, resistors and inductors; active components include discrete devices and integrated circuits. Downstream is a variety of consumer electronics, communications equipment and other end products.

Terminal electronics, as the end of the industry chain of the electronics industry, is an important component of the integration of the entire industry chain downstream, the current domestic consumption of terminal electronics is mainly focused on wearable devices, mobile terminals, smart home, automotive electronics, military electronics, security electronics and so on.

The secondary industry, semiconductor corresponding to the index is more, there are CES semi-conductor, CSI semiconductor, the national securities semiconductor chip. Secondary industry components corresponding to the active industry funds have Noan and Xin mixed, Cai Tong integrated circuit industry stocks, Guolianan technology power stocks, etc.;

Second level of industry optical optoelectronics corresponding to the index has the CSI electronics index, Shenwan electronics index, active industry funds have Changsheng electronic information industry mixed, Changxin electronic information industry quantitative mix, Changsheng electronic information theme mix, China Europe electronic Information industry Shanghai, Hong Kong and Shenzhen stocks, etc.;

The secondary industry electronics manufacturing corresponding index has the CSI Industry 4.0 index, active industry funds have Guangfa Manufacturing Selection Mixed, Hua'an Intelligent Equipment Theme Stocks.

3, communications

Communications include: 5G, optical communications, cloud computing, big data, satellite communications, Internet of Things.

5G communications industry industry chain mainly includes five important links: network planning and design (pre-technology research and network construction planning), wireless main equipment (core network, base station antenna, RF devices, optical devices / optical modules, small base stations, etc., wireless supporting, network coverage and optimization links to start the layout), transmission equipment (wireless devices need to be wired after the transmission link, followed closely by the following including Fiber optic cable, system integration, IT support, value-added services, etc.), terminal equipment (chip and terminal supporting), operators. There are also PCB/CCL industry chain (for base station RF, baseband processing unit, IDC and core network routers, etc.), dielectric waveguide filters (base station RF).

The secondary industry communications equipment corresponding index has 5G communications, CSI All-Index communications equipment, OTC index funds are Cathay CSI All-Index communications equipment ETF linkage, Yinhua CSI 5G communications theme ETF linkage, and so on.

New materials include: electronic components, special metal functional materials, high-end metal structure materials, advanced polymer materials, new inorganic non-metallic materials, high-performance composite materials.

Warehousing and logistics include: warehousing, logistics.

4, media

Media and entertainment include: netroots economy, broadcasting, film and television technology, advertising.

The media industry refers to the dissemination of various types of information, knowledge of the media entity part of the industry group, it is the production, dissemination of a variety of text, graphics, art, language, images, sound, digital, symbols, and other forms of information products as well as to provide a variety of value-added services of the special industry. The media industry covers the fields of information production, processing and dissemination, and has the characteristics of a typical information service industry; the sources of media (i.e., the contents disseminated by each media) have strong cultural and humanistic characteristics, and the media industry belongs to an important part of the cultural industry.

Secondary industry culture and media corresponding to the on-market funds have CSI media index, over-the-counter funds are its connecting funds and Penghua media classification, ICBC CSI media index, active industry funds have Penghua Wenchuang media and entertainment stocks; the second level of the industry Internet media active industry funds have rongtong Internet media mix, agro-banking information and media stocks, guangfa electronic information and media stocks, huarun yuanda information and media technology mix. Media technology mix.

Additionally, there are new energy including photovoltaic, nuclear energy, biomass energy, water pollution, air pollution, solid waste treatment, resource exploration and efficient mining and comprehensive utilization of technology. Aerospace includes the field of aviation, the field of space satellites; new pharmaceuticals including pharmaceutical biotechnology, traditional Chinese medicine and natural medicines, chemical drugs (innovative drugs and original drugs), medical devices and equipment, and other fields also belong to the branches under the big science and technology.

Technology sector investment logic

While the long-term investment value of science and technology stocks is significant, but due to the complexity of the fine-molecular industry, the investment on the professional knowledge requirements are relatively high, the individual investor may not be very friendly.

If you think differently and invest through a fund, you can leverage the investment and research team of the fund company to have a higher probability of realizing investment in quality technology stocks.

How to pick?

1, observe the fund's actual investment portfolio and long positions

Observe whether the long positions invested in are mainly concentrated in the field of science and technology, and whether the style has drifted in past investments. For example, in the second half of 2020, or in 2018, during the period of low performance of technology stocks, whether the fund can still stick to the technology track. It is not difficult to have a full position in technology during a bull market in technology stocks, but it is rare to have a bear market in which you do not forget your original intention.

There are many A-share scarce technology listed companies in the Hong Kong stock market, such as Internet companies Tencent, Meituan, Ali, millet, etc. If you can cover the quality companies in Hong Kong stocks, technology stock investment will be more complete and comprehensive. Whether you can go south to invest in Hong Kong stocks through the Hong Kong Stock Connect mechanism can generally be seen in the investment scope of the fund prospectus.

2, observe the fund manager's past investment experience

Technology stock investment for professional knowledge requirements are very high, this point is not only for ordinary investors, for the fund manager is actually the same. The technology industry is a fast technology iteration, and earnings are relatively unstable. Those with longer-term research and investment experience and those who have gone through the tech cycle may have a deeper knowledge of the relevant industry chain.

To examine the fund manager, you can look at the official announcement of the number of years of investment, you can also look at the fund manager's public interviews or live broadcasts, to understand whether the fund manager has a mature self-consistent investment logic and stock selection methods.

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