The average of the same kind is mainly compared with this fund. For example, the industry average of a fund is +50%, while the income of a fund is 70%, which shows that the return on investment of this fund far exceeds the industry average, indicating that the fund manager has strong ability in stock selection, stock selection and risk control.
On the other hand, if the industry average of a fund is +50%, and the income of this fund is only 20%, it means that the stock yield chosen by the fund manager is not as good as the industry average, which means that the stock selection ability is poor in disguise and the yield is worse than that of similar funds. In the same way, when buying a fund, you can also compare it with the Shanghai and Shenzhen 300 funds.
There are three lines on the fund chart: the income of the fund, the average income of similar funds, and the reference line of the Shanghai and Shenzhen 300.
The average of the same kind in the fund refers to the average income of the same type of fund. The average income of the fund can be higher than that of similar funds, which shows that the fund management is better. If the fund's income is lower than the average income of similar funds, it shows that the fund is poorly managed.
For example, the average return rate of all funds in the brokerage sector is around 10% this year, and the return rate of fund A in the brokerage sector is 12% this year, so fund A outperforms most funds in the brokerage sector, while the return rate of fund B in the brokerage sector is 8% this year, so fund B does not outperform the average level of funds in the brokerage sector.
According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.
According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.