With the development of economy, diversification of investment is becoming more and more common. Stocks, funds, bank financing, bonds, trusts, etc. have come into our lives, and the citizens are also a vast group. Many citizens are asking what the performance benchmark of the fund is 3.9% and how to judge the quality of the fund.

To evaluate the quality of a thing, we need a reference standard. For example, if a house is good, what we actually want to express is that building a house is better than other houses, with good floors, good lighting, transparent north and south, good ventilation, good residential property and high greening.

the same is true for the evaluation of the quality of funds, so this reference standard is the performance benchmark. For example, if Xiao Wang buys a stock fund, assuming that the reference performance benchmark of the fund is the Shanghai and Shenzhen 3 Index, if the Shanghai and Shenzhen 3 Index rises by 3.9% for a certain period of time, the funds held by Xiao Wang will rise by 8% during this period, far exceeding the increase of the Shanghai and Shenzhen 3 Index, which shows that the fund is good. If the funds held by Xiao Wang do not rise or even fall by 2% during this period, it shows that the funds held by Xiao Wang are still in the process of rising the market index.

when evaluating the performance benchmark of a fund, we should also consider how long the evaluation period is, whether the fund has changed its manager, whether the expected return curve of the fund is smooth and upward, and how much the withdrawal ratio is. All these factors will affect the quality of the fund.

in short, in the process of evaluating the performance benchmark of funds, we should use a dialectical perspective and make a comprehensive analysis, so as to select a good fund that we like and get a good expected return. Tips: Financial management is risky, and investment needs to be cautious.