However, high star rating does not mean excellent performance. Some investors rely too much on the fund rating, thinking that the future with high star rating will have excellent performance, and the fund with low star rating will have no value. This idea is unscientific.
Therefore, when selecting funds with star ratings, investors should understand that the comparison of star ratings is the same type of funds, which also means that five-star stock funds and three-star bond funds cannot be compared.
Secondly, you should know which type of fund matches your investment purpose, investment period and risk tolerance, and then you can enter the step of using star index selection after defining the type.
It should be noted that the star rating is based on the fund type, so when the fund type changes, the star rating may change.
After selecting the fund according to the reference star, the fund selected here is not a certain fund, but the scope of selection. Investors should first choose the type and duration of the fund according to their investment preferences, and then use the star index to select the target fund.
In addition, the longer the rating time, the greater the reference significance, and the longer the rating time, the greater the guiding significance of star rating to investors, because the more experienced and stable such funds are.