According to the different investment objects, it can be divided into stock funds, index funds, mixed funds, bond funds, money market funds, futures funds and so on.
When choosing fund products, the most important thing is to consider your risk tolerance. Different types of investors have different fund rankings:
1. aggressive: suitable for investing most of the funds in stock funds, and can pay attention to various rankings and stock rankings.
2. Steady type: suitable for balanced investment in stocks, bonds and money funds, and can focus on these three types of rankings.
3. Conservative: it is not suitable to buy stock funds, focusing on currency ranking and financial ranking.
Fund performance only represents the past, not the future. Ranking depends on the probability of whether the fund's performance is sustainable. When analyzing fund rankings, it is necessary to comprehensively analyze short-term, medium-term and long-term performance.
Generally speaking, funds with high short-term, medium-term and long-term performance are often more likely to have excellent performance in the later period. Using the "4433 ranking rule" to select funds is suitable for most ordinary investors.
When focusing on medium and long-term indicators:
The first "4": select the fund whose annual performance ranks before similar products 1/4;
The second "4": choose the fund whose performance ranks before similar products in two, three and five years 1/4;
When focusing on short-term indicators:
The first "3": select the fund with the previous performance ranking 1/3 of similar products in the past six months;
The second "3": select the fund with the performance ranking of 1/3 in the same type of products in the previous three months.
Generally, funds with low ranking for a long time are often lacking in judging market trends and styles, industry configuration and stock selection, or their overall investment and research strength is weak, which needs to be treated with caution.