There are more than 4000 funds in the market. If there is no way, it is like looking for a needle in a haystack and dreaming. Here are a few index parameters to teach you how to choose a good fund by exclusion.
I. Historical performance
Looking at the historical performance of the fund is not to look at absolute data, such as expected income, profit or loss, but to compare with peers and their own performance benchmarks. Comparing the same kind, we can observe the similar ranking of the fund from nearly 1 to nearly 3 years, whether the trend of the fund is stronger than the Shanghai and Shenzhen 300 (equivalent to the trend of the broader market) and whether it exceeds its own performance comparison benchmark.
If the trend of the fund has always exceeded the trend of the Shanghai and Shenzhen 300 index and exceeded its own performance benchmark, it shows that when the market is good, it earns more than the market; When the market is bad, it falls less than the broader market, which is a fund with strong earning power that everyone wants.
Second, the size and establishment time of the fund.
The size of the fund cannot be too large or too small. It is too big to turn around and the fund is difficult to manage. If it is too small, there is a risk of liquidation. Relatively speaking, funds with a scale of more than one billion are relatively easy to operate.
The test of the fund's earning ability depends not only on its performance in the bull market, but also on its performance in the bear market. Therefore, a long-established fund often goes through the bull-bear cycle (a cycle is about 5 to 7 years). If its performance is also good, it is relatively more convincing than other funds with good performance.
Three. Stability of funds
The stability of funds mainly lies in the stability of performance and the stability of fund managers. The stability of fund performance can refer to the maximum withdrawal range, and the stability of fund managers can depend on whether the fund changes fund managers frequently. Funds that frequently change fund managers need to be carefully considered.
Well, these are three important indicators for choosing a money-making fund. Generally speaking, through these triple screening, combined with other aspects, the probability of choosing a money-making fund is greater!