Sharp index is expressed by Sp, which refers to the risk premium obtained by unit risk. Using this index helps investors to judge the management quality of open-end fund managers. Investors can compare the Sharp Index of an open-end fund with the Sharp Index of the whole market. If the sharp index of open-end funds is higher than the market average index, it means that the manager's operation is better than the market; If the Sharp index of open-end fund is lower than the market average index, it means that its operation is worse than the market.
Treno index, expressed by Tp, is the risk premium of unit risk, and it is an indicator for investors to judge whether the risks taken by a fund manager in the process of managing funds are beneficial to investors. The bigger the Treynor index, the higher the unit risk premium, the better the performance of open-end funds, and the risks taken by fund managers in the management process are conducive to investors' profits. On the contrary, the smaller the Treynor index, the lower the unit risk premium, the worse the performance of open-end funds, and the risks taken by fund managers in the management process are not conducive to investors' profits.
Zhan Sen index, expressed by Jp, is a comparative indicator of the expected return of fund investment and the expected return of securities market. Investment funds may have negative returns in a certain period of time, but this does not mean that this open-end fund is not good. As long as the Zhan Sen index is positive at this stage, we can still think that the fund is an excellent open-end fund, even if its income is negative. On the contrary, even if the open-end fund purchased by investors shows cash income in a certain period of time, if its Zhan Sen index is negative, it means that the open-end fund purchased by investors is inferior, because other investors can earn 20 yuan with 100 yuan, and this fund manager can only help investors earn 10 yuan, so investors should consider choosing a new fund again.
These evaluation indicators are some international common open-end fund evaluation indicators, which can meet the general investment requirements. However, the development of open-end funds in China is still in the exploratory stage, and there is still a certain gap between the breadth and depth of the market and that of developed countries. Therefore, investors need to consider various policy factors and national conditions in the process of considering deep entry into the market to ensure that investors will not have any disadvantages in investing through funds.