Under normal circumstances, funds have no P/E ratio. The index fund that invests in the index is affected by the change of the index, so investors can take the price-earnings ratio of the corresponding index as the price-earnings ratio of the index fund. Investors can check the P/E ratio of A shares from Shen Yin Research Institute (Shenwan) and China Securities Index, and the P/E ratio of Hong Kong stocks from Hang Seng Index.

Since the fund has no P/E ratio, how can investors judge the quality of the fund?

(1) performance of the fund. The fund will give a tracking index when releasing financial reports, which is a standard to judge the operation of the fund. The more the fund exceeds the tracking index, the better the fund performance. In addition to tracking the index, the performance of the same type of fund is also an evaluation standard. In contrast, the more a fund exceeds the same type of fund, the better the performance of this fund.

(2) the stability of the fund. On the one hand, the stability of fund refers to the fluctuation range of fund performance. Under the same growth, the smaller the fluctuation of fund performance, the better. On the other hand, the stability of the fund refers to the stability of the fund manager. If the fund often changes managers, it shows that the investment strategy and style of the fund are unstable, and the investment risk of the fund will be greater.

(3) third-party rating. Investors can judge the operation of the fund according to the evaluation of the fund by third-party institutions.