If investors consider buying multiple funds to spread their risks, then the "portfolio" column should be carefully looked at. It should be understood that there is no need to diversify risks by buying a variety of investment products, as long as the correlation between these investment products is small and the trends are different. Although the free information of Morningstar can't tell us the correlation between the past trends of the two funds and the best risk-return ratio, we can refer to it roughly through the information under the column of "portfolio". The general idea is to buy funds with different "investment styles" as much as possible, preferably funds with different industry proportions and top ten stock positions, so as to truly achieve the purpose of diversifying investment and reducing risks.
"Risk assessment" must pay attention to
The statistical indicators under the column of "risk assessment" are more important. The two indicators "average income" and "standard deviation" that reflect income and risk must be seen. If you are prepared to buy once and hold it for a long time, naturally, the higher the income, the better, and the smaller the standard deviation. Sharpe ratio, which combines these two indicators, is an important direct reference.
You should buy offensive products in the bottom area.
At present, everyone thinks that the market is close to the bottom, and when preparing for bargain hunting, they generally want to choose aggressive funds, so the alpha coefficient and beta coefficient provided by Morningstar relative to the index and similar funds will be the key reference. The beta coefficient is greater than 1, which reflects that the fund and the comparison object fluctuate greatly, and vice versa. Since you want to choose an attack fund, it is natural to choose the fund with the largest beta coefficient.