When investing in financial management, we sometimes hear people mention several common fund risk indicators. What are the common fund risk indicators that investors need to know? Now let's learn the relevant knowledge!

While reducing the risks brought by individual stocks, funds also have relatively large risks, especially market risks. The following risk indicators are available for reference.

1) standard deviation

The standard deviation mainly shows the fluctuation of fund growth rate, and the smaller the value, the more stable it is for investors. But we can't judge the risk of the fund only by standard deviation, which can only reflect the fluctuation of the fund's income and can't fully represent the size of the fund's risk.

2) Maximum withdrawal rate

It mainly reflects the risk control ability of the fund, and mainly refers to the maximum loss that may occur when a person purchases the fund in a specific period. It is proportional to the risk, and the smaller the value, the smaller the risk.

3) Beta index

This index must be familiar to everyone. We often say that smart beta refers to the beta index. It can be used to measure the value fluctuation of individual stocks or stock funds relative to the whole stock market. The greater the absolute value of the beta index, the greater the change range of its income relative to the broader market, and vice versa. If it is negative, it means that it changes in the opposite direction to the market, and the market will rise and fall.

You can buy funds with high beta coefficient before the bull market comes, or before the expected surge, and enlarge the possible income.

4) Sharp ratio

It is mainly used to judge the relationship between fund income and risk, that is, how much excess income will be generated for each additional unit risk. The higher its value, the more it can prove that this fund is a good fund with low risk and high income.