What does the fund's rate of return in the past year mean?
The fund's rate of return in the past year is worth tracing the fund's profit for one year from today. This rate of return can effectively help us identify the quality of the fund. On the one hand, the market was good last year, and the fund's rate of return significantly underperformed the main index, which means that the quality of the fund is average. On the other hand, if the market was poor last year and the fund's rate of return was positive or the decline was far less than the average market decline, then this shows that the fund's risk control was well done.
The return rate of the fund in the past year is an important basis to show the operation level of its fund manager. Because we have all experienced the market in the past year, we are deeply impressed by the overall trend judgment. In addition, it can be noted that the operation process of a fund is often operated by multiple fund managers, so the rate of return of the fund in the past three or five years cannot reflect the subsequent operation of the fund. After all, the helm will change. Therefore, the rate of return in the past year must be the reaction of the latest fund manager level, and it can't be fake.
Generally speaking, the fund's rate of return in the past year can effectively reflect the fund's risk level, income level, risk control, investment and other aspects, so we can use this indicator to evaluate the fund.