Compared with stocks, funds have lower risks and are more suitable for novices with lower risk tolerance. So, how do novices choose the right fund? How to choose a fund that suits you? Below we have prepared relevant contents for your reference.

Investors can choose the right fund through the following aspects:

1, risk tolerance

When investors buy funds, they should choose funds according to their investment preferences and risk tolerance, that is, for investors with low risk tolerance, they can choose some money funds and bond funds, and for investors with high risk tolerance, they can choose some index funds and stock funds.

2. Investment objectives

When choosing a fund, we must first make clear our investment objectives and choose a fund according to our investment objectives. For example, if you have a high investment goal, you can choose some stock funds, otherwise you can choose some bond funds and monetary funds.

3. Fund investment objectives

When choosing a fund, investors should know whether the investment target of the fund is to invest in the money market or the stock market. And understand the risk and income of the fund through its investment target, so as to better choose the fund that suits you.

4. Historical performance of fund managers

The historical performance of fund managers reflects the investment level of fund managers. Generally speaking, the better the historical performance of fund managers, the higher their investment level, and the greater the probability of such funds rising in the later period. On the contrary, fund managers with poor historical performance are more likely to manage funds that fall later, so investors should choose funds with better historical performance to invest.