In investment funds, most people pay more attention to performance, but often after buying the fund with the best performance recently, the performance of the fund is not as good as expected. This is because the selected fund fluctuates too much and has no stable performance.

The tool to measure the degree of capital fluctuation is standard deviation. The standard deviation refers to the possible change degree of the fund. The greater the standard deviation, the greater the degree of possible changes in the future net value of the fund, the smaller the stability and the higher the risk.

For example, a fund with a standard deviation of 30% a year means that the net value of such funds may rise by 30% within a year, but it may also fall by 30%. Therefore, if there are two funds with the same rate of return, investors should choose the fund with smaller standard deviation (taking less risks and getting the same income), and if there are two funds with the same standard deviation, they should choose the fund with higher income (taking the same risks but getting higher income). Investors are advised to judge the fund from both income and risk. For example, the two-year return rate of Fund A is 36%, and the standard deviation is18%; Fund B has a two-year yield of 24% with a standard deviation of 8%. From the data point of view, the return of fund A is higher than that of fund B, but the risk is also higher than that of fund B. The "unit risk return" of fund A is 2(0.36/0. 18), while that of fund B is 3(0.24/0.08). Therefore, in the past, fund A was better only by income evaluation, but after the standard deviation, that is, the risk coefficient adjustment, fund B was better.

In addition, the standard deviation can also be used to judge the nature of the fund. According to Morningstar statistics, the average standard deviation of equity funds is 5. 14, and that of active funds is 5.04. The average standard deviation of conservative allocation funds is 4.86; The average standard deviation of ordinary bond funds is 2.91; The average standard deviation of money fund is 0.19; It can be seen that the more active the fund, the greater the standard deviation; If the standard deviation of the fund held by investors is higher than the average, the risk is high. Investors may wish to watch the Olympics while looking at the funds in their hands.

Tips: The above contents are for reference only, and no suggestions are made. Investment is risky, so choose carefully. Ping An Bank also has a consignment fund business. For details, please visit Ping An Pocket Bank APP- Finance-Fund.

Reply time: 202 1-08- 12. Please refer to the latest business changes announced by Ping An Bank in official website.

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