How to choose a hybrid fund?
1, the operational ability of the fund manager
The management ability of fund managers affects the performance of funds and the trend of fund net value. Investors should try their best to choose funds whose managers have strong operational ability and whose managed funds have high expected returns.
2. Capital withdrawal rate and standard deviation.
The standard deviation measures the fluctuation range of the total rate of return in a certain period. The greater the standard deviation, the greater the possible fluctuation of the future net value of the fund, the smaller the stability and the higher the risk. The maximum withdrawal rate refers to the maximum loss rate that may occur at any time when purchasing funds. The higher the maximum withdrawal rate, the greater the loss. Therefore, investors try to choose funds with smaller standard deviation and lower maximum withdrawal rate.
3. The establishment time and rating of the fund.
The shorter the fund is established, the lower the rating and the higher the risk. Investors should choose funds that have been traded for a long time and have been established for at least 1 year and have a high rating.
Which of hybrid funds and equity funds has higher expected returns?
Theoretically, the expected annualized expected return of equity funds is higher than that of hybrid funds. Because equity funds adopt radical strategies and hybrid funds are both radical and conservative, the relative return of hybrid funds may be lower than that of equity funds. However, in the case of a sharp decline in the market, hybrid funds can adjust 70% of the shares to 1%, and it is the limit for stock funds to reduce their positions to 80%. In this case, the annualized expected return of hybrid funds is even higher. Generally speaking, when the market is good, the expected return of equity funds is higher than that of hybrid funds. If the market is not good, the expected return of hybrid funds is higher than that of equity funds.
Finally, remind investors that the fund is risky and investment needs to be cautious.