What are the three main levels of fund selection?
The potential of backward funds is actually more difficult to judge. The index type is easy to judge. Index funds have high transparency and high positions. If we can judge that the current stage is the bottom of the market, then even if the past performance of the fund is poor, the future potential of the fund will be great. For example, the funds with poor past performance such as SSE 50 or CSI 300 mentioned above will have greater potential in the future. Active funds are more difficult to judge, which requires deep skills and judgment of the fund's heavy stocks. To put it simply, you can look at the position of the fund and the industry with heavy positions. If we think that the current market is the bottom area, then the industries with high positions and heavy positions have higher expected returns, and then the fund may become a dark horse in the future. Another way is to look at the performance of funds managed by fund managers in the past. If the performance is average, it may be a bucket that can't help.