In recent years, with the gradual popularization of investment and financial management awareness, more and more people have begun to contact funds. As for the three lines on a fund chart, it is an inevitable problem for many novices. This paper will analyze how to treat the three lines in the fund chart from multiple angles.

1. What do the three lines represent?

The three lines on the fund chart usually represent three kinds of data: fund net value, benchmark index and similar average index. Among them, "net fund value" refers to the actual performance of the fund and is the main indicator to measure the performance of the fund; "Benchmark index" is an index with high weight in the market, which is used to compare with the net value of the fund and measure the relative performance of the fund. "Homogeneous average index" is the average performance of the same type of fund, which is used to measure the position of the fund in the same type of fund market.

Second, how to compare the three lines?

1. fund net value line: the trend of fund net value line is simple and intuitive. The higher the rise, the better the fund performance, and the lower the decline, the worse the fund performance.

2. Benchmark index line: The trend of benchmark index line should be combined with the fund net value line. If the benchmark index line is higher than the fund's net value line, it means that the fund's performance has not reached the market level and should be continuously concerned; If there is little difference between the benchmark index line and the fund net value line, it means that the performance of the fund is close to the broader market; If the benchmark index line is lower than the fund net value line, it shows that the fund has the ability of excess returns.

3. Similar average index Line: The trend of similar average index Line is used to measure the performance of funds in similar fund markets. If the similar average index line is higher than the fund net value line, it means that the fund performance is not as good as the average level of similar funds; If there is little difference between the similar average index line and the fund net value line, it means that the performance of the fund is close to that of similar funds; If the similar average index line is lower than the fund net value line, it shows that the fund has the ability to outperform the similar fund market.

Third, the problems that need attention

1. Period of the fund chart: Before comparing the three lines of the fund chart, you need to pay attention to the time period of the fund chart. Different periods may draw different conclusions, so you need to pay attention when comparing.

2. Fund type: The three lines on the trend chart of different types of funds are different, and different analysis should be made according to different fund types.

3. Pay attention to the fund net value line: the fund net value line is a key indicator that needs special attention, whether it is trend fluctuation or performance relative to benchmark index and similar average index.