When buying funds, because each fund may have many different funds, it needs further screening. When screening funds, we need to use some indicators. So when selecting funds, what indicators are better?

What indicators are better when choosing a fund?

1, see the trend of cumulative yield. It can be seen from the trend of cumulative rate of return that the income of a fund over the years generally falls instead of rising, or falls instead of rising. Obviously, only those funds whose cumulative income is on the rise are worth buying.

In addition, when looking at the trend of the fund's cumulative rate of return, we can also see the comparison between the fund's cumulative rate of return and similar funds. If the cumulative rate of return of the fund is rising, and in most cases the cumulative rate of return is higher than the average level of similar funds, it may be a relatively good fund.

However, the trend of cumulative rate of return should not be too short, otherwise the reference is of little significance, and it will take at least one year or even longer. Therefore, this indicator is not suitable for short-term funds.

2. Look at the size of the fund. On the one hand, the size of the fund can show the strength of the fund, on the other hand, it can also reflect investors' preference for the fund.

The scale of the fund is relatively large, which can better diversify investment, and at the same time, it is more capable of coping with some uncontrollable factors and reducing unsystematic risks. Moreover, the fund is large in scale and the risk of passive liquidation is relatively small. If the fund size is too small, the opposite is true.

In addition, most of the funds owned by the fund are raised from investors. If the scale of the fund is relatively large, it means that the fund may be more popular with investors.

Although a fund welcomed by a large number of investors is not necessarily a good fund, if the fund is not good at all, investors are likely to vote with their feet and stay away from it. For a long time, it is difficult to increase the scale of such funds.

However, a good fund is not as big as possible. Because the bigger the fund, the more difficult it is to manage, and the income may not be as good as some smaller ones.

3. Look at the sharp ratio. Sharp ratio is an index to judge the quality of funds by combining the rate of return and risk of funds. Its function is to see what the marginal rate of return each fund can generate when the risk increases. For example, when the Sharp ratio is 1, it means that every increase in risk can increase the return of 1%.

Obviously, the higher the proportion of Sharp, it means that every time you increase the same risk, you can bring more incremental benefits. Other things being equal, such a fund is worth buying.

4. Look at the establishment time of the fund. Whether a fund is good or not will only be known after the test of time. The fund has been established for a long time and has experienced a rich market environment. If it can survive all kinds of tests and live well, then there is reason to believe that it can survive all kinds of tests in the future.

The fund has been established for a short time and there is not enough time to go through various tests. Whether it is good or not remains to be verified. Although this kind of fund is not necessarily bad, the risks it needs to bear are still relatively large.

5. Look at the maximum withdrawal of funds. The risk of fund investment comes from the decline of the fund. Through the maximum withdrawal of the fund, to a certain extent, we can see whether a fund is doing well in risk control.

What are the main indicators of buying funds?

The reference indicators for buying a fund include: past performance index of the fund, maximum withdrawal index of the fund, Sharp ratio, Shanghai and Shenzhen 300 income curve, similar average value, accumulated net value of the fund, fund position trend, fund size, whether the fund has dividends, etc. For example:

Past performance indicators of the fund: the past performance of the fund is the past income. The better the past performance, the better the management level of fund managers, and the stronger the ability to exchange positions and shares.

Maximum withdrawal index of funds: the maximum withdrawal indicates the biggest loss of investors after purchasing funds for a period of time, so the smaller the maximum withdrawal, the better.

Sharp ratio: The higher the Sharp ratio, the higher the excess rate of return that the fund can obtain on unit risk, and the better its performance. Generally speaking, the Sharp ratio of equity funds and hybrid funds is greater than 1.

Shanghai and Shenzhen 300 yield curve: that is, the fund compares the Shanghai and Shenzhen 300 index. If the fund income is higher than the Shanghai and Shenzhen 300 income curve all the year round, it means that the return on investment is high; On the contrary, it is better to buy the Shanghai and Shenzhen 300 Index directly.

Fund dividends: The more dividends a fund pays, the higher its rate of return.

What indicators should I look at when choosing a fund?

Maximum withdrawal rate 1: the maximum withdrawal rate when the net product value reaches the lowest point at any historical point in the selected period. Generally speaking, it means that in a period of time, the net value of the fund falls from the highest point to the lowest point, and this decline is the maximum withdrawal rate. For most funds, the lower the maximum withdrawal rate, the better. Investors can often determine the return of funds through the maximum withdrawal rate. The higher the maximum withdrawal rate, the more difficult it is for investors to withdraw funds. Of course, the maximum withdrawal rate is not a single indicator, and it is also necessary to observe the moving slope of the average fund net value. The maximum withdrawal rate of a fund is usually proportional to the risk. The smaller the maximum withdrawal rate, the stronger the risk control ability of the fund.

2 Sharp ratio: Sharp ratio refers to the degree to which the increase of excess return of portfolio increases unit risk. When the fund invests, the higher the Sharp ratio, which means the higher the excess return when taking certain risks; Sharp ratio is very small or even negative, which means that the excess return of a certain risk is very small or even no excess return. Investors can understand the excess return of the fund by looking at the Sharp ratio. If they pursue high returns and can take certain risks, they can choose a fund with a higher Sharp ratio.

3 Fund Net Value: Check the accumulated net value of the fund according to the time when the fund was established, so as to understand the historical performance of the fund.

4 Fund size: If the size of the fund is gradually increasing, the net value of the combined fund is also rising steadily, indicating that the fund is developing steadily and the management ability of the fund manager is still good.