When investors buy funds, they usually choose several funds for comparison and choose a better one to buy. So, what are the five skills to choose a good fund? How to choose a good fund? Below we have prepared relevant contents for your reference.

There are five skills in selecting funds:

1. Fund withdrawal rate

Fund withdrawal rate refers to the extent to which the net value of a fund falls from the highest position to the lowest position in a period of time. Generally speaking, the greater the fund withdrawal rate, the greater the fund fluctuation and instability, and the smaller the fund withdrawal rate, the smaller the fund fluctuation and stability.

2. Historical performance of the fund manager

The historical performance of the fund manager reflects the investment level of the fund manager to a certain extent and affects the trend of the net value of the fund. Investors try their best to choose funds with better historical performance of the fund manager for investment.

3. Fund investment targets

The trend of fund investment targets will also affect the trend of fund net value. Investors should choose those funds whose fund targets are on the rise and have great development potential and prospects.

4. The establishment time and rating of the fund

The shorter the establishment time of the fund, the lower the rating, and the higher the risk. Investors should choose the fund with longer transaction time, which has been established for at least one year and the higher the rating.

5. Standard deviation

The standard deviation measures the fluctuation range of the total rate of return in a certain period. The greater the standard deviation, the greater the possible fluctuation of the future net value of the fund, and the smaller the stability, the higher the risk.

after selecting the fund, investors should reasonably control their positions when buying, and never buy all the funds, leaving enough funds to deal with the risks brought by the fund's later trend. At the same time, after buying, set up a stop-loss position to control the risks within a certain range.