First of all, we must judge our risk tolerance. If you don't want to take too much risk, you can consider low-risk capital preservation funds and money funds; If the risk tolerance is strong, equity funds can be given priority.

Equity funds are more suitable for young and middle-aged investors who have fixed income and like aggressive financial management. Risk-neutral people should buy balanced funds or index funds. Different from other funds, the investment structure of balanced funds is the balanced holding of stocks and bonds, which can ensure that the investment always runs in the middle and low risk range and achieve the investment purpose of expected annualized expected return and risk balance. People with poor risk tolerance should buy bond funds and money funds.

Secondly, we should consider the investment period. Try to avoid frequent purchase and redemption in the short term, so as not to cause unnecessary losses.

Third, we should learn more about the relevant fund management companies and investigate their investment style and performance. First of all, we can compare the expected annualized expected return of this fund with that of similar funds. Second, the expected annualized expected return of the fund can be compared with the market trend. If the performance of a fund is better than the market index in the same period most of the time, then it can be said that the management of this fund is more effective. Third, we can examine the cumulative net growth rate of the fund. Fund cumulative net growth rate = (cumulative net share-unit face value) ÷ unit face value.