There are many kinds of funds. For fund investors, how to choose a good fund to invest and achieve the goal of profit is very important. Investors can refer to the following points when choosing funds:

1. Do your best.

When choosing an investment fund, investors should fully analyze their risk tolerance according to their actual situation. Although investment funds have "expert financial management" and portfolio investment, which can effectively disperse investment risks, they only eliminate the non-systematic risks of securities and cannot avoid market risks. Therefore, when choosing a fund, investors should do what they can, act cautiously, and choose the right investment fund according to their attitude and tolerance to risks.

2. Choose a fund with strong liquidity

Investors should pay attention to ensuring a certain fixed income when choosing funds. Choose those relatively stable and liquid investment funds, such as income-oriented open-end investment funds, which can easily redeem cash when funds are urgently needed.

Select growth fund

Choosing growth funds is conducive to fighting inflation. The purchasing power risk brought by inflation is inevitable. Growth or positive growth investment funds usually invest most of their funds in stocks, which can effectively resist inflation and purchasing power risks.

4. Avoid choosing high-risk investment funds.

Investing in derivative financial products such as futures and options is very risky, and the hidden potential losses are also great. For investment funds mainly engaged in such speculative activities, investors should try to avoid them and not be confused by the lucky success of others.

5. Don't blindly follow the trend

Choosing investment funds according to the best rankings in the past period of time, blindly following the crowd, may occasionally work, but most of the time it is a wrong step and a losing game. Because in fact, very few excellent foundations repeat their excellent performance again and again. Many funds with good performance did not even perform as well as the average level of the whole market in the second year. Therefore, the past performance of the fund can only be used as a reference, but not as a basis for decision-making.

6. Choose an investment fund close to the market index.

You should choose a fund close to the market index. Some fund portfolios are established by selecting most or all sample stocks or constituent stocks of the market index. This passive management of investment funds provides investors with a low-cost choice. Using the advantages of this kind of investment fund, investment can not lag far behind the overall trend of the market. On the contrary, some special funds focus on investing in certain industries, such as high-tech, consulting and monopoly industries. And such funds are prone to ups and downs. Specific industries are optimistic and profitable; When some industries are depressed, they also lose a lot.

7. Give priority to investment funds with low expense ratio.

The cost of investment fund is directly related to the investment cost and the fund income, thus affecting the fund's investment return. Investing in high-fee funds is equivalent to losing money from the beginning. Even if the past performance is excellent, it will not catch up with the low-fee fund in the short to medium term. Therefore, if the performance of high-fee funds is not outstanding, or investors only want to make short-term investments, it is best to avoid high-fee funds in order to ensure the return on investment.

8. Choose those investment funds whose performance has maintained steady growth.

The sustained and steady growth of performance reflects the good performance of investment funds, which mainly benefits from the excellent management level, management technology and management means of fund managers, rather than relying on temporary luck and opportunity. On the one hand, investment funds with sustained and steady growth in performance reflect the excellent management level and quality of fund managers; On the other hand, it also reflects the trust and confidence of many investors.

9. Make full use of portfolio investment theory.

We should choose those investment funds with sufficient dispersion, because compared with more specialized funds, such funds can effectively spread risks and maintain the steady growth of investment income. On the other hand, if there are enough funds, investors can also choose various types of investment funds and establish their own fund portfolios to reduce market risks. Therefore, if conditions permit, we should invest in different types of investment funds at the same time to achieve the purpose of diversifying risks.