What does the fund's ability to resist risks mean? The ability of fund to resist risks refers to the ability of fund to resist the risk of loss. Generally speaking, the fund's ability to resist risks depends on whether the stocks contained in the fund are dispersed, such as reducing the risk of losses caused by investing in an industry alone, and the fund manager's judgment on the stock market, such as replacing stocks that may fall or undergo fundamental changes in the portfolio. So how to identify the investment risk of a fund? It can be judged from the "standard deviation" and "sharp ratio" of a fund over a period of time. The standard deviation of the fund refers to the deviation between the monthly return of the fund and the average monthly return in the past period. The greater the fluctuation of fund income, the greater its standard deviation. The smaller this indicator, the better the stability of the fund. For example, in the past 36 months, the monthly rate of return of Fund A was 1%, so its standard deviation and risk were relatively stable. For example, the rate of return of fund B is constantly changing, 5% a month, 25% next month and minus 7% next month, so the standard deviation of fund B is much greater than that of fund A, and the risk of fund B is also great. The Sharp ratio of funds, also known as the Sharp Index, is a calculation index invented by william sharpe, the winner of the Nobel Prize in Economics in 1990. It is used to measure the cost performance of investments (such as funds). The higher the Sharp ratio, the better, because the higher the Sharp ratio, the higher the income. Sharp ratio of funds = [average rate of return-risk-free rate of return]/standard deviation. For example, if the income of a fund is 5%, the average income is 2 1%, and the standard deviation is 8%, then you can get 16% by using 2 1%-5%, and then use 16%/8% = 2, which means that every investor