If you are a novice in financial management but don't know what financial products to buy, the fund is a good choice, because the risk of the fund is not as high as that of the stock, and it is not as difficult to understand. Secondly, if the market is good, the income of the fund is generally higher than the interest on bank deposits. So how do financial management understand funds? How to choose a good fund?

How to understand funds in financial management?

The most common types of funds are money funds, bond funds, mixed funds and stock funds. Generally, it can be ranked from the risk, profitability and volatility of funds. Details are as follows:

Risk: Stock-based (finger-based) mixed-base debt-based cargo base

Profitability: Stock-based (index-based) debt-based goods base.

Volatility: stock-based (finger-based) mixed-base debt-based cargo base

The type and risk degree of general funds will be indicated at the top of the fund. Before buying, you should know the risk range you can bear, and you can analyze the risk range you can bear according to the above. Generally speaking, money funds are the least risky. If you don't want to lose money, you can consider the money fund.

How to choose a good fund for financial management?

A fund that has been very good will definitely not fall behind too much. Generally, the top 25 funds have reference value, followed by the fund manager's past rate of return, employment rate, historical performance of other funds under his name, investment industry, maximum withdrawal rate, annualized volatility, Sharp ratio, etc. Both should be considered.