Current location - Trademark Inquiry Complete Network - Tian Tian Fund - What preparations do you need to make to decide on an investment fund?
What preparations do you need to make to decide on an investment fund?
All investments have one purpose: to get a return. But any investment tool has risks, and each investor's investment goal is different. Before investing in a fund, investors need to know the purpose of their investment (for retirement, house purchase, children's education, or marriage, vacation and Chinese New Year), their risk tolerance and planned investment amount, then decide the investment direction and investment cycle, and then choose a fund that meets the requirements.

In the face of a wide variety of funds in the market, in short, investors can look at them from five angles: investment type, performance, fluctuation risk, cost and expenses, and management team. Every aspect can be compared vertically in history and horizontally in the same category. The past performance of the fund cannot represent the future performance, but only reflects the historical investment management level of the fund. Performance can not only look at the total rate of return, but also compare the rate of return of funds with appropriate benchmarks, such as related indexes and similar funds. The past risk of the fund can be tested by standard deviation. In addition, the Morningstar Fund evaluation system also uses Morningstar risk coefficient to investigate the downside risk of the fund, that is, the loss probability that the total rate of return is lower than the risk-free rate of return in the same period. What kind of fund to invest in, that is, the portfolio analysis of the fund, is particularly important for choosing the right fund. Investors can refer to the provisions on investment scope in the fund prospectus, the quarterly portfolio announcement and the detailed contents of the portfolio in the semi-annual report and the annual report, and have reasonable expectations on the fund investment strategy and income. Who manages the fund has an important influence on the performance of the fund. Therefore, when choosing a fund, you must know who the fund manager is, and his tenure, education and work experience can be referenced. The actual income of the fund is closely related to the cost. Investors must pay management fees, subscription fees, redemption fees, conversion fees and other fees when enjoying the professional financial services of the Fund. Investors can compare the related expenses of similar funds in order to get the maximum return.