Fund trading is inseparable from personal investment characteristics, but fund trading is nothing more than buying low and buying high, earning the difference in the middle, so it is necessary to find the right position when buying and selling. The following is how to judge whether a fund is good or not, I hope it will help you!

What is a fund?

From the perspective of capital relationship, the fund refers to the funds specially used for specific purposes and independently accounted for. Among them, including endowment insurance fund, retirement fund, relief fund, education reward fund, etc. In various countries, there are also special financial funds, collective welfare funds for employees, key construction funds for energy and transportation, and budget adjustment funds unique to China.

In terms of organizational nature, a fund refers to an institution or organization that manages and operates funds dedicated to specific purposes and conducts independent accounting. Such fund organizations can be non-legal institutions (such as financial special funds, college education incentive funds, insurance funds, etc.). ), public institutions (such as Soong Ching Ling Children's Foundation in China, Sun Economics Prize Foundation, Mao Dun Literature Prize Foundation, Ford Foundation and Huo Burridge Foundation in the United States, etc. ) or corporate institutions.

How to judge whether a fund is good or not?

1, total net assets

If the investment income of a fund is high, it will attract more investors to invest in the fund and make the growth of the total net assets of the fund higher than the average level. In other words, if the total net assets of a fund are increasing, it means that the fund is performing well and can be invested.

2. Changes in unit net value

The subscription and redemption of open-end funds are based on the fund's unit net value, and the change of unit net value is also the most common and obvious indicator reflecting the change of a fund's performance. If the change direction of the net value of a fund unit is steady and upward, it means that the performance of this fund has risen steadily and can be invested.

3. Return on investment

The return on investment is the net growth rate of the fund in a certain period of time. The higher the return on investment, the better the performance of the fund, and the more investment income investors get. Generally, when buying a fund, you can check the return on investment of the fund over a period of time, but investors should pay attention not only to a certain period of time, but also to several years. After all, sometimes the fund fluctuates greatly, and the return on investment may be distorted at some time.

4. Sharp ratio

Sharp ratio is a special index to measure fund performance. Its calculation method is to subtract the risk-free interest rate from the average value of the fund's net growth rate over a period of time and then divide it by the standard deviation of the fund's net growth rate. When buying a fund, you can check the sharp ratio of the fund in the fund analysis index. It can make up for the defect that the growth rate of net value depends only on income, and consider both income and risk. A simple understanding is how much risk we take and get a certain return. The greater the value, the higher the risk-return of fund unit or the lower the risk of unit return. Of course, if the value is negative, it means that the average net growth rate of the fund during this period is lower than the risk-free interest rate (such as the bank deposit interest rate).

Characteristics of the fund

1. Collective investment fund is an investment method: it skillfully gathers scattered funds and gives them to professional institutions to invest in various financial instruments to realize asset appreciation.

2. Diversified risk funds can diversify their portfolios and invest in various securities. By diversifying investment, on the one hand, the advantages of huge capital and numerous investors are used to reduce the investment risks faced by each investor, on the other hand, the complementarity between different investment objects is used to achieve the purpose of diversifying investment risks.

3. The expert management fund implements the expert management system. These professional managers have been specially trained and have rich experience in securities investment and other project investment.

How to judge whether a fund is good or not;

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