After understanding the fund products, many investors know that it is a product of experts' collective financial management, but when it comes to buying funds, many individual investors often have a headache. For example, at present, the common channel to buy funds is through banks. However, when investors inquire about fund information in banks, they often have no way to start when they see a pile of fund leaflets. Hundreds of funds, dozens of fund companies, which product to buy? In fact, although the form and content of leaflets are different, there are several basic information that must be disclosed, which is also the key content that investors should understand every time they read leaflets.

First, make clear the types of funds. The easiest way is to look at the investment target. In other words, the fund invests in stocks (equity funds), bonds (bond funds), stock bonds (balanced funds) or money market funds. The expected returns and risks of the above-mentioned types of funds are stock-type, balanced-type, bond-type and money-market funds from high to low.

2. Who is the fund manager and who is the manager responsible for managing and operating the fund? The trading qualification, stock selection concept and stability of fund managers will all affect the performance of funds. It is suggested to inquire about the basic information and qualifications of fund managers on the websites of fund companies first, and learn more about the style and past performance of fund managers.

Third, understand the risk coefficient. Risk coefficient is an index to evaluate fund risk, which is usually expressed by three items: standard deviation, beta coefficient and Sharp index. Beginners only need to master the following principles: the smaller the "standard deviation", the smaller the fluctuation risk (because the standard deviation is an index to measure the fluctuation degree of fund return); The "beta coefficient" is less than 1, and the risk is smaller (because the beta coefficient is an index to measure the sensitivity of fund return and relative index return, for example, the beta coefficient of the whole market is 1, and if the net value of the fund fluctuates more than 1, the risk of fund fluctuation is higher than that of the whole market); The higher the "Sharp Index", the better (because the Sharp Index is an indicator to measure the extra return per unit risk of the fund. The higher the index, the higher the return of the fund after considering risk factors, and the more favorable it is for investors.

Fourth, find out the significance of fund performance trend to win the broader market. The significance of "comparison chart of fund and market trend" is to let investors check whether the long-term performance of the fund outperforms the market. So this chart should be a complete chart based on the establishment date. If it only shows short-term performance, it may mean that the fund company has chosen the most favorable period. In addition, you can also compare the fluctuation range of the fund trend. If the fluctuation of the fund's high and low points is greater than that of the market, it means that the fluctuation of the fund is greater than that of the market and the risk is relatively high. On the other hand, in fact, some funds are not suitable for comparison with the broader market, and there is a problem of choosing a suitable benchmark for comparative performance. For example, many foundations invest in some bonds. In this case, it is inappropriate to use the market index completely when choosing the performance comparison benchmark, and the relative performance compared is also misleading.