There are many types of funds, mainly divided into bond funds and stock funds. To invest in the fund market, users need to learn how to value the fund. Learning to look at the valuation of the index is of great significance to fund investment and has great guiding significance for users' subsequent investment operations. So, what are the methods to judge the valuation of funds?

What are the methods to judge fund valuation?

Method 1: When purchasing fund products, directly display the fund name, fund net value and fund valuation. When users can directly view the details of the fund they need to buy, they can directly see the valuation of the fund. In an undervalued state, it shows that the fund has long-term investment value, while in an overvalued state, it shows that the fund has a big bubble.

Second, investors can use the historical percentile of PB and the historical percentile of PE to judge whether a stock is overvalued or undervalued. When the percentage of PB is below 20%, it means that it is underestimated, and when it is above 80%, it means that it is overvalued, and it is a reasonable range between 20% and 80%. When the percentage of PE is less than 20%, it means it is underestimated, and when it is higher than 80%, it means it is overvalued.

No matter what valuation method users use, when the fund is overvalued, it means that the investment risk is high and the loss probability is high. When the valuation of the fund is low, it shows that the fund has investment value and high profit probability. When the index or industry index enters the undervalued area, increase investment, make regular position investment when the valuation is moderate, and reduce investment and gradually make profits when the valuation is too high.