How to see the quality of the fund?
1, depending on the historical performance of the fund. By observing the performance of the fund in recent years, especially when the market fluctuates greatly, we can understand its risk and stability. Generally speaking, investors can evaluate the performance of a fund by comparing the cumulative net growth rate, annualized rate of return, maximum withdrawal and other data.
2. Pay attention to the background of fund companies and fund managers. Fund managers have a direct impact on funds, and investors need to know the investment experience, investment strategy and past performance of fund managers. In addition, fund companies with good market reputation and strong financial strength have better fund management.
3. Compare the transaction costs of funds. Different funds charge different fees, so investors who like short-term trading should give priority to funds with low transaction costs.
What are the characteristics of index funds?
1. index funds track specific market indexes, such as the Shanghai and Shenzhen 300 Index and the Shanghai and Shenzhen 50 Index in the stock market. Investment index funds can spread risks and reduce the impact of a single investment target on the portfolio.
2. Index funds usually have low management fees. Because its investment strategy is relatively simple, it does not need active management and intraday trading by fund managers, so the cost of the fund is low, which is helpful to improve the income of investors.
3. Index funds are suitable for long-term investment. As the market index tends to rise for a long time, holding index funds can realize investment in the whole market and reduce the impact of short-term market fluctuations.