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How to identify fund risks?
Identify the fund risk can refer to the following indicators:

1. Maximum retreat

The maximum retracement is an important index to measure the risk of the fund, which can be understood as the maximum possible loss interval. Simply put, it is used to describe the worst possible situation after buying a product.

When choosing a fund, you can screen out some products that are beyond your risk tolerance through maximum extraction.

2. Standard deviation

Simply put, the standard deviation is usually called volatility.

The standard deviation reflects the fluctuation range of fund return. Generally speaking, the greater the standard deviation, the more drastic the fund will rise and fall with the changes of the market.

3. Sharp ratio

Sharp ratio is one of the indicators to measure the risk-adjusted income of the fund, which reflects the excess rate of return obtained by the fund taking unit risk. Simply put, it can be understood as the ratio of investment income to investment risk.

The greater the Sharp ratio, the higher the risk return of fund unit risk.

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