First of all, the fund return rate should be compared with the trend of the stock market. If a fund performs better than the market index most of the time, investors can say that the management of this fund is effective, and the fund management company that manages this fund has excellent research and investment capabilities.
Secondly, the income of the fund should be compared with similar funds. If the fund performance exceeds other similar funds for a long time, it shows that the fund manager has excellent management ability. What needs to be pointed out here is that we cannot compare different types of funds with each other. For example, equity funds and hybrid funds cannot be compared, and hybrid funds and debt-based funds cannot be compared. Because different types of funds have different risk-return ratios, they are also different in position allocation and operation methods. Generally speaking, the higher the risk, the more radical the operation method, and the higher the corresponding return on investment.
Thirdly, we should compare the fund's rate of return with the expected rate of return, and see whether the fund's performance meets investors' expectations according to the fund's investment principles and the fund manager's operating philosophy. When the performance of the fund is far from the expectation, investors should look back to see if the fund manager has violated the investment principles and concepts promised in the fund contract and unnecessarily increased the investment risk of the fund.
Finally, we should compare the fund income with historical performance. Only stable performance is the real performance, occasional success may be just luck, and occasional failure may be only temporary. Investors should comprehensively judge the performance of funds from a long-term perspective.