The evaluation indexes are Zhan Sen (α), standard deviation, information ratio and Sharp. Zhan Sen (α) Zhan Sen Index is used to measure the part of the fund's performance that exceeds its due reward for taking market risks. The higher the α value, the better the performance of the fund relative to the broader market, which can also be said to evaluate the fund manager's stock selection ability. Standard deviation is used to measure the fluctuation degree of fund net value. The lower the value, the more stable the fluctuation of fund net value.

Information ratio is to subtract the average rate of return of the same type of fund from the rate of return of the fund, and then divide it by the standard deviation of the difference after subtraction. The higher the value, the better the investment efficiency. The Sharp Index is the average monthly return rate of the fund in the past one or two years divided by the average one-month fixed deposit rate (risk-free return). The higher the value, the higher the excess return that the fund can obtain.

How to buy a fund?

First of all, you must open an account in a bank and choose the domestic and foreign funds you need. The bank will deduct money from your bank account book regularly, so you must keep the account well, you have money.

Second, there is a new service to deduct money from your credit card. Similarly, the bank will regularly deduct money from your credit card. As long as the credit card is paid off regularly every month, there is no need to pay other fees such as revolving interest.

The standard of each fixed investment is based on the contract you signed with the bank at the beginning to see how much money you want to invest in each period. Of course, you should consider your own ability, because funds, like stocks, will go up and down, but the funds you invest in each period are the same, but the stocks in each period are different, so your long-term risk is average. Generally speaking, foreign countries suggest that you invest in overseas funds of BRIC countries, with a three-year return rate of more than 25%. As for the extra fee, the bank charges 3% for the fund you choose, but each bank is completely different. Some can attract you to invest for a long time by lowering the handling fee after you invest in 12.

What is a good fund?

"Past performance can't represent future performance" is a truth that almost everyone who invests in funds knows. In this case, how should investors who want to apply for funds choose funds? Investment Gu pointed out that there are four major observation indicators in selecting funds, namely: standard deviation, Sharp index, information ratio and beta value. The selection criteria are: the lower the standard deviation, the higher the sharpness index and the higher the information ratio.

In the past, investment funds were regarded as "fools get rich by investing". However, after the myth of fund performance is broken, investors are not interested in applying for fund management, whether they buy funds or not.

Four main observation indicators were used as selection criteria.

Although the fund is not as hot as it used to be, it does not mean that the fund cannot be a good financial management tool. Franklin Securities Investment pointed out that although most investors don't know how to evaluate the quality of funds with four major observation indicators, they might as well use the annual awards issued by internationally renowned fund evaluation institutions as the selection criteria. By correctly observing various indicators, subscription funds can also create a good return on investment.

In order to have a good return on investment, risk management is an investment index that investors can't ignore. According to international assessment agencies, the indicators of fund risk management assessment include annualized standard deviation, beta value and Sharp value.

The annualized standard deviation is used to measure the volatility of the rate of return, so the lower the number, the better; Beta is used to measure the market risk of funds, so the smaller the beta, the better. Sharp is used to measure the excess return of unit total risk, so the higher the better.

Because the performance of the fund can not only look at the short-term performance, only by observing the overall performance of the fund in the medium and long term can we choose a high-quality fund with good real risk and performance.

The greater the standard deviation, the more drastic the net value rises and falls.

After selecting the funds with good overall performance in the medium and long term, we can use the four major observation indicators to further select the funds worthy of investment. Franklin Securities Investment pointed out that the "standard deviation" evaluation method refers to measuring the fluctuation of yield. Investors can get this information from fund companies. Generally speaking, the greater the standard deviation, the greater the net value fluctuation and the greater the risk.

As for the "Sharp Index", it is a measure of the excess return on unit risk, and the higher the "Sharp Index", the better. The so-called "excess return" is to subtract the return rate of risk-free assets (such as time deposits or government bonds) from the total return rate of funds and then divide it by the standard deviation of funds (the concept of fluctuation risk).

In addition, the "information ratio" is an index to measure the risk-adjusted excess return of the fund relative to the same type of fund. The calculation method is to subtract the fund's rate of return (residual value is excess return) from the rate of return of the same type of fund or market and then divide it by the standard deviation of excess return. The higher the information ratio, the higher the degree to which the fund continues to outperform the broader market.

Beta value is higher than 1, which is more volatile than the market. Finally, look at the "beta value" that measures the volatility of the fund relative to the market index. A "beta value" greater than 1 means that volatility is greater than market volatility. In other words, a stock with a "beta value" of 1.5 will also increase by 15% when the market rises by 10%. When the market is good, a high "beta value" greater than 1 brings high returns. When the market conditions are not good, investors will want the "beta value" of the portfolio to be less than 1 to reduce the decline.

The ideal of investors is that the "beta value" is small and there is a high return, which is difficult to take into account. Therefore, investors can add stocks with lower beta value to the portfolio, which will reduce the overall beta value of the portfolio and produce some risk diversification effects.

The most common calculation method of Sharp Index is as follows:

Sharp index = (return-risk-free return)/standard deviation

Sharp ratio = (x-Rf)/e

This formula means "the excess return that investors in a fund or portfolio can get per unit risk", and the excess return means the part where the return rate of a fund or portfolio exceeds the risk-free return rate (such as the time deposit interest rate).

Therefore, the higher the Sharp index, the higher the compensation investors can get per unit risk, and vice versa. In other words, the larger the "usual" value of the Sharp Index, the better.

Sharp index, which is used to measure the excess return that can be obtained under fixed risk. In other words, the Sharp Index represents how much return investors can get for each additional risk, based on the data of the past 12 months, relative to the bank deposit interest rate. If it is positive, it means that the fund's rate of return is higher than the risk of fluctuation; If it is negative, it means that the risk of fund operation is greater than the rate of return.

What are the operating rules of the fund?

I suggest you invest regularly for a long time, and you will have a good and stable rate of return.