What do you think of fund risk?
1 depending on the fund type: different types of funds have different risks, so in general, stock funds have the greatest risk, followed by bond funds, and monetary funds have the lowest risk.
2 Look at the maximum retracement: this refers to the maximum callback range of the fund's net value from the high point to the low point within a certain time interval. We usually judge how much we may lose at most according to the previous maximum callback.
3 Look at volatility: volatility is also a reference indicator to measure the volatility of funds. The greater the volatility, the more intense the price fluctuation, which means that the risk will be higher.
4 Look at the Sharp ratio: this is a standardized indicator of fund performance evaluation. Our simple understanding is that "investors can get x times of excess returns for every 1 risk". In this way, among the same type of fund products, the higher the Sharp ratio, the better.
In addition, the historical performance of fund managers often has an important reference function, because different fund managers will have different investment styles, so if his biggest loss exceeds his affordability, then it needs to be carefully considered.