First, how to judge the quality of the fund?
The index fund that invests in the index is affected by the change of the index, and investors can take the price-earnings ratio of the corresponding index as the price-earnings ratio of the index fund. Investors can check the P/E ratio of A shares from Shen Yin Research Institute (Shenwan) and China Securities Index, and the P/E ratio of Hong Kong stocks from Hang Seng Index. The stability of the fund can be used to judge the quality of the fund. On the one hand, the stability of the fund refers to the fluctuation range of the fund performance, which is the same as the growth.
Next, the smaller the fluctuation of fund performance, the better. On the other hand, the stability of the fund refers to the stability of the fund manager.
Make love.
Second, what are the precautions for beginners to buy funds?
Funds also have the same characteristics, that is, they are more suitable for long-term fixed investment. It is not difficult to increase income by holding a fixed investment fund for a long time! To choose a fixed investment, we must first understand several types of open-end funds: currency type, bond type, capital preservation type and stock type. There is no redemption fee for the money fund, and the income is equivalent to six months to one year's deposits, which can be redeemed at any time without loss. The subscription and redemption costs of bond funds are relatively low, and the income is generally greater than that of money funds, but there is also a risk of loss, and the loss will not be great. Stock funds have the highest subscription and redemption costs, and the fund assets are stocks. When the stock market falls, the fund will have the risk of losing money, but when the stock market rises, there will be gains. Through long-term investment, the average annual return of stock funds is about 18%~20%, and that of bond funds is 7%~ 10%. Another point is that the fixed investment of the fund is similar to long-term savings, which can spread the investment cost evenly and reduce the overall risk. It has the function of automatically increasing the price and reducing the price on dips. No matter how the market price changes, it can always get a relatively low average cost. Therefore, regular fixed investment can smooth the peaks and valleys of the fund's net value and eliminate market fluctuations. As long as the selected funds grow as a whole, investors will get relatively average returns without worrying about the timing of entering the market. Funds are the best choice to pursue long-term benefits. If it is a fixed investment, it can also smooth out the loss of income caused by short-term fluctuations. Since it is the pursuit of long-term returns, you can choose the variety with the highest target returns, index funds. Index funds have optimized their targets. Blue-chip stocks and high-quality stocks in the industry, as representatives of models, have avoided the risks of individual stocks because there are a certain number of models. And avoid the impact of the economic cycle on individual industries. Because it is a long-term fixed investment, it takes time to digest the inevitable high-risk characteristics of high-yield varieties.