When we buy funds, the rate of return is of course very important, but we must know that high returns are bound to be accompanied by high risks. So how do we choose low-risk funds? Or to put it another way, if you can know how much money you may lose at most when you buy a fund? So is it possible to be aware of it? In fact, we can know. Today, I will introduce one of the risk measurement indicators of the fund-the maximum withdrawal rate.

What does the maximum withdrawal rate mean? Refers to the decline of fund net value price from the highest point to the lowest point in a certain period of time. Let's use an example to help you understand. For example, the highest price of a fund in the past year was 2 yuan, and then it began to drop from the highest price in 2 yuan to 1 yuan, and then it continued to rise from 1 yuan. Then the decline rate is 50%, then the maximum withdrawal rate of this fund is 50%. Therefore, if the historical maximum withdrawal rate of a fund is 50%, then we can think that if you buy this fund, your biggest possible loss is 50%. For example, if you buy 654.38+00000 yuan, you may lose up to 5000 yuan.

The maximum withdrawal rate is a risk measure. The smaller the withdrawal rate, the stronger the fund's ability to resist risks. At the same time, this indicator can also test the risk control level of fund managers. The same two funds have increased by 50% in the past year, but the maximum withdrawal rate of one fund is 10% and the maximum withdrawal rate of the other fund is 20%. So which fund is more worth buying? Obviously, the first fund with the highest withdrawal rate is better, because under the same income, we must choose the one with low risk.

How to operate specifically? We can check it through the Tian Tian Fund application. You can enter the fund you want to buy in the search bar, such as 005827 E Fund Blue Chip Selection.

Then you can see the maximum retracement index 16%. What is the biggest retracement of Noan's recent growth? 3 1.2 1%,

Therefore, before buying a fund, you must first look at your risk tolerance. If you don't want to take too high a risk, don't choose a fund with a high withdrawal rate. So how to choose a low-risk fund?

We choose the fund optimization, then the data selection base, and then the low retracement fund, and then you can see the low retracement fund, and the maximum retracement is only about 1.4%.

It means that you lose more than 1% at most, which is very stable, but the low withdrawal rate also means that the income will not be too high. Personally, I prefer 15% cash withdrawal funds, which have certain high returns while taking into account stability. Of course, the most important thing is to choose a fund that matches your own risks. Be aware of it and choose a base instead of asking for help.