Compared with investment products such as stocks, P2P, Yu'e Bao, and private equity funds, public funds are highly sought after by ordinary investors for their relatively higher security, standardized operations, and transparent credit approval.

Especially now that Yu’e Bao has restricted purchases, public funds have attracted more attention from investors.

So, can you buy public funds with your eyes closed?

What should we pay attention to?

See below.

Don’t be blinded by fund performance. As ordinary investors, when choosing to buy a fund, what everyone pays most attention to is its “performance”.

It is precisely because of this mentality of investors that many institutions usually put performance in a crucial position when marketing funds, and there are some tricks in this.

If you open the official website of a public fund or a third-party fund sales website at will, you can find the tricks in it.

The performance statistical periods of many funds are usually divided into the following categories: last 3 months, last half year, last year, since establishment, etc.

So the question is, why do some funds that have been established for several years only choose the rate of return in the past three months as a marketing selling point?

And some funds have not been in operation for a long time, but they claim that they have "expected returns as high as XX% since their establishment"?

If you think about it carefully, you will understand that this is a typical report of good news but not bad news. Only the good parts are intercepted and told to investors, so that investors have the impression that this kind of fund only makes profits but does not lose money.

Although the "Securities Investment Fund Sales Management Measures" have detailed provisions on the authenticity of fund promotional materials, misleading sales, and publication of past performance, they do not clearly provide for penalties for violating the provisions.

This has caused some funds to be false and exaggerated. Therefore, investors must keep their eyes peeled when purchasing funds.

How to identify the quality of a fund?

Since you may encounter exaggerated fund performance when purchasing a fund, how do we identify the quality of a fund?

Just learn the following two points: 1. Look at the long-term performance of the fund.

Since many fund products like to use short-term performance such as three months to confuse people's vision, when we buy fund products, we must have a multi-minded view, that is, check its long-term performance. The quality of long-term performance can reflect whether a fund is good or bad.

Stability and whether it can truly bring returns to investors; 2. Look at the performance ranking of the fund.

When you buy a fund, you don’t necessarily have to choose a product that has just been released or has been released not long ago but has a high expected return. You can check the performance ranking of the fund. The top-ranked old funds are also worth buying!

Summary: As a relatively safe investment product, public funds are more worthy of investment by ordinary investors than stocks, P2P, Yu'e Bao, private equity funds, etc. As long as you learn to distinguish the quality of funds from the above two points, you can buy them

A public fund suitable for your own investment.