Users generally choose high-growth funds when investing in funds, and such funds will have a good increase after buying. When buying a fund, we should generally pay attention to the establishment time of the fund, the issuing company, the fund manager and the previous dividends of the fund. After knowing the above, you can decide whether to buy.
Users can use the method of fixed investment when investing in funds. Generally, they choose to buy a certain number of funds every week or month, and the cost of holding funds can be reduced through long-term investment. It should be noted that the fixed investment of the fund does not guarantee a certain profit, and the fixed investment of the fund may also cause losses.
Expansion: maximum withdrawal rate
The maximum extraction rate refers to the maximum extraction range of yield at any historical point in the selected period when the net product value reaches the lowest point. Maximum retracement is used to describe the worst possible situation after purchasing a product. Maximum retracement is an important risk indicator, which is more important than volatility for hedge funds and quantitative strategy trading.
The application of popular thinking in stock index futures fund product subscription can be understood as the following points.
1. Exit is used to measure the anti-risk ability of private placement products.
Withdrawal refers to the maximum withdrawal rate of product net value from the highest point to the lowest point in a certain period, which is not necessarily (highest net value-lowest net value)/the highest net value, but it may appear in a certain period of decline.
The formula can be expressed as follows:
D is the net value of a certain day, I is a certain day, J is the day after I, Di is the net value of the product on the first day, Dj is the net value of the day after Di, drawdown is the maximum extraction rate, drawdown=max((Di-Dj)/Di), which is actually to evaluate the extraction rate of each net value and then find out the maximum value. It can be realized by program.
2. Retreat is used to describe the biggest loss that any investor may face.
A fund product is measured by historical absolute income, and its initial subscribers may always make money by holding it, but investors who subscribe when private equity funds perform best may not necessarily make money, and may even suffer huge losses.
Generally speaking, paying attention to the maximum withdrawal rate of private equity funds can help investors understand the risk control ability of funds and know the biggest loss they face. Of course, while paying attention to the maximum withdrawal rate, we should also pay attention to the moving slope of the average net value of the fund.
When investors heard that the highest withdrawal rate was 49%, they were almost booed; When drawing the yield curve, facing the growth of 10 times, the 49% retracement is no longer a problem.