What does the fluctuation of the fund mean?
The volatility of the fund, also known as the standard deviation, refers to the fluctuation range of the return on investment of the fund, that is, the degree of change of the return. Generally speaking, the greater the fund fluctuation, the more unstable the income and the higher the risk. For example, the following two fund products A and B:
By comparison, it can be seen that in the same holding time, the yield of fund product A and fund product B is the same, but the fluctuation of fund product B is greater, like a roller coaster. This also means that investors who buy fund product B need stronger risk tolerance, while fund product A is much more stable and has been rising steadily, which is more suitable for novice investors and the holder's holding experience is better.
Bigger is better or smaller is better?
Not absolutely, the smaller the volatility of the fund, it does not mean that the fund products will be good. When investors choose fund products, they should not only look at the volatility of fund products, but also make comprehensive judgments in combination with other indicators. Generally speaking, it is more meaningful to compare volatility in the same type of fund products, but it is impossible to compare volatility in different types of fund products.