Investment funds, most people pay more attention to performance, but often buy the algorithm of the fund. After the fund with the best performance recently, the performance of the fund is not as good as expected. This is because the selected fund fluctuates too much and has no stable performance. The tool to measure the degree of capital fluctuation is standard deviation. The standard deviation refers to the possible change degree of the fund. The greater the standard deviation, the greater the degree of possible changes in the future net value of the fund, the smaller the stability and the higher the risk.
In addition, the standard deviation can also be used to judge the nature of the fund. According to Morningstar's statistics, the average standard deviation of stock funds this year is 5. 14, and that of collective funds is 5.04. The average standard deviation of conservative allocation funds is 4.86; The average standard deviation of ordinary bond funds is 2.91; The average standard deviation of money fund is 0.19; It can be seen that the more active the fund, the greater the standard deviation; If the standard deviation of the fund held by investors is higher than the average, the risk is high. Investors may wish to watch the Olympics while looking at the funds in their hands.