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Does buying a fund depend on its valuation?

When buying a fund, it depends on the valuation of the fund. When the net value of the fund is higher, the fund is more frothy and risky, and is mainly sold. When the fund valuation is at a low level, it means that the fund is undervalued.

, there is a high investment value, you can choose to buy at this time.

In addition, investors can also analyze the fund based on the following factors: 1. The operating ability of the fund manager. The operating ability of the fund manager affects the performance of the fund and the trend of the fund's net value.

Investors try to choose funds whose fund managers have strong operating capabilities and whose funds they manage have higher expected returns.

2. Fund’s retracement rate and standard deviation. The standard deviation measures the fluctuation range of the total return within a certain period. The larger the standard deviation, the greater the potential fluctuations in the fund’s future net value. The smaller the stability, the higher the risk.

The maximum drawdown rate refers to the maximum loss rate that may occur when buying a fund at any point in time. The higher the maximum drawdown rate, the greater the loss. Therefore, investors should try to choose funds with smaller standard deviations and lower maximum drawdown rates.