First, give priority to authoritative rating agencies.

For now, domestic institutions such as Galaxy Securities Fund Research Center, international professional fund rating companies such as Morningstar and Lipper, which have opened branches in China, are the first choices for reference.

Secondly, the number of stars is very important, but while paying attention to the stars, you also need to pay attention to the fund risks.

Generally speaking, the number of stars of a fund can indeed reflect the performance of the fund since its establishment to a certain extent.

In the same year of operation, the performance of funds with high star ratings is bound to be better than similar funds with low star ratings.

However, the actual risk fluctuations of the fund cannot be directly observed from the asterisk.

A five-star fund is likely to be a fund with both high returns and high risks.

Furthermore, it is a good way to select funds based on fund star ratings. It is relatively easy to find high-quality funds (for example, China Universal Advantage Select Fund, which won the 2006 Golden Bull Fund, has maintained a five-star rating in the Galaxy Securities Fund Evaluation), but

Ratings should not be equated with future performance.

Finally, fund stars are only for comparison of funds of the same type. Therefore, funds of different types cannot be simply compared with stars to determine which one is better. Investors should pay special attention to this.

For example, it is not appropriate to compare a five-star stock fund with a four-star bond fund, because the risk-return characteristics of stock funds and bond funds are inherently different.

In fact, four-star bond funds are a good choice for investors who have low risk tolerance and prefer to pursue stable returns.