Common quantitative indicators of fund risk mainly include: standard deviation of yield, beta coefficient, maximum retracement, Sharp ratio and tracking error. New fund investors should make a comprehensive analysis based on these indicators.

2. What is the standard deviation of the rate of return?

The standard deviation of income measures the deviation between the daily income and the average income of the fund, which is used to measure the volatility of the fund's income. The greater the standard deviation of the fund, the greater the corresponding risk. The net value of Fund A and Fund B increased by 30% over a period of time. Fund A grew steadily, with a standard deviation of 12%, while Fund B fluctuated greatly, with a standard deviation of 23%. Although the net increase of the two funds is the same, the fluctuation risk of fund B is greater than that of fund A. ..

3. What is the β coefficient (β)?

Usually, the rate of return of a fund can be divided into two parts. Simply put, the fund's income = α+β * The market goes up and down. Part of the total income is related to the α coefficient (α), which represents the excess income of the fund. This part of the income has nothing to do with market ups and downs, but measures the investment management ability of fund managers. Another part of the total income is related to the beta coefficient (β), which measures the direction and extent of the price change of the fund relative to the whole market.

When β

When 0

When β= 1, the performance of the representative fund and the market basically shows consistent changes;

When β >; At 1, the performance of the fund and the market basically changes in the same direction, and the fluctuation is greater than that of the market.

4. What is the maximum retreat?

The maximum retracement measures the maximum loss that investors may face in a certain period. The specific calculation method is: retracement at any historical point in the selected period, and the maximum yield retracement when the net product value reaches the lowest point. The net value of funds A and B increased by 20% over a period of time. Fund A grew steadily, with a maximum withdrawal of 0%, while Fund B fluctuated greatly, with a maximum withdrawal of (1.5-1.2)/1.5 = 20%. Although the net increase of the two funds is the same, the potential maximum loss risk of fund B is greater than that of fund A. ..

5. What is the sharp ratio?

Sharp ratio measures the risk-return ratio of the fund, that is, how much excess return can be generated by the total risk per unit relative to the risk-free interest rate. Therefore, the greater the Sharp ratio, the better the return risk performance of the fund. Sharp ratio = (annualized rate of return on funds-risk-free interest rate)/annualized volatility of funds. For example, if the Sharp ratio of Fund A is 0.5 and the average Sharp ratio of the same type of fund is 0.2, it means that the risk-return performance of Fund A is better than the average level of the same type of fund.

6. What is tracking error?

Tracking error is the main index to evaluate index funds, which measures the risk of deviation between the return of fund portfolio and the return of the underlying index, that is, the close degree of the trend of the fund and the underlying index. The smaller the tracking error, the closer the trend of the fund and the index is, which means that investors can get a return closer to the index performance.

7. How to judge the risk of the fund through fund positions?

The Fund will disclose the position information in regular reports, including the top ten positions in quarterly reports and the complete positions in semi-annual reports and annual reports. According to the position information, the position concentration of the fund can be calculated. For example, the concentration of the top ten positions is the sum of the ratio of the top ten positions of the fund to the net value of the fund. Usually, funds with high concentration can't disperse risks well because of their concentrated investment scope, and investors may bear higher risk of net value fluctuation.