Funds are financial products, and more and more investors hope to participate in the capital market through funds. So how should we choose a fund? Then let's take a look at how to choose a fund, hoping to help everyone! For your reference only!

How does the fund choose the method?

Method one, the method of looking at fund performance.

To know how a fund performs, we should not only look at the rate of return, but also have a background reference. Compare the fund's rate of return with an appropriate benchmark. The so-called appropriate benchmark refers to the relevant indexes and other funds that invest in the same type of securities.

For example, there are two funds whose returns in the past were 22% and 20% respectively. From the data alone, the former performs better. However, a fund with a return of 22% may lag behind its performance benchmark or similar funds by 4 to 5 percentage points; And a fund with a return of only 20% may surpass similar funds or performance benchmarks by 6 percentage points. So the latter is a better performing fund.

Method 2: Look at the risk of fund investment.

We all know that the higher the return on investment, the higher the risk and the greater the possibility of loss. Therefore, while considering the fund's rate of return, we should also consider the fund's volatility. Two funds with the same rate of return may have different competition, because their volatility may be different.

There are many methods to measure fund volatility, among which standard deviation and beta coefficient are two commonly used risk calculation indicators.

Third, different types of funds have different returns.

There should be reasonable expectations for the return of the fund. For example, if you buy a bond fund, don't expect to get an annualized return of 10%, but if you buy a stock fund, you can set yourself an annualized return target of 10%.

A careful study of the fund's investment portfolio can help us understand the fund manager's investment strategy. Don't guess the portfolio according to the name of the fund.

Fund managers are also flexible in their investments. For example, a fund manager may only buy stocks or bonds, or both; It may focus on investing in high-priced stocks with rapid growth, or it may favor low-priced stocks with poor profit prospects. Therefore, it is necessary to analyze specific problems.

Method 4: Choosing a fund manager is very important.

The fund manager's mastery of the whole fund has a decisive influence on the performance of the fund. Therefore, when selecting funds, we must study and investigate the past resume and service life of fund managers. If you don't know the fund manager, you are irresponsible for your own investment.

Some funds have made impressive achievements in the past few years, but since the change of fund managers, the investment strategy has changed greatly and the fund performance has declined rapidly. Of course, there are also funds with poor performance, but the performance is booming after the fund manager changes.

Method five. Fund investment is a long-term investment.

Need to pay management fees, subscription fees, redemption fees, conversion fees and other fees. These ratios remain basically unchanged from year to year. Although the income of fund investment fluctuates, we should not buy and sell funds frequently when the funds are falling or rising, because the fees paid in this way are also very expensive. So when we buy a fund, we can hold it for a long time. We can't control the sudden changes in the market, but we can save money.

How to choose a fund?

Investors must first determine the risk range that individuals can bear, so that they can choose matching fund products, because there are many types of funds, such as money funds, which are much less risky than stock funds and bond funds; Then, after determining a fund product, you must choose the investment method, which can be a one-time investment or a fixed investment. If the pursuit of sustained and stable income, you can choose to vote. This will also spread the risk.

Brief introduction of investment fund related knowledge:

Fund investment is also a means of venture capital, and the income obtained by the fund is directly proportional to the risks taken by investors. If investors see a fund company, the fund products are all high-yielding, then investors will pay more attention and distinguish carefully. Before making formal investment, investors can judge whether individuals can invest at any level according to their own economic situation, capital situation and household income and expenditure ratio, so as to avoid blind investment and thus affect their lives. For inexperienced investors, you can choose professional fund companies to help them manage their investments. For some ordinary investors, they are more familiar with the field of financial investment and more sensitive to the judgment of new risks, so such investors will be more sensitive to the speculation of investment.

Learn to choose funds in an instant

1. What is a fund?

A fund is to pool the funds of many investors who don't understand financial investment, but want to beat CPI or earn more income, and give them to professional fund managers to earn higher investment income for investors.

2. What are the classifications of funds?

◆ According to the transaction method, it can be divided into open-end and closed-end funds.

Open-end fund: There is no fixed scale, and investors can purchase and redeem it at any time.

Closed-end fund: the scale is fixed within the specified period, and investors can't purchase and redeem it at any time, but they can transfer it in the secondary market like buying and selling stocks.

According to different investment objects, funds can also be divided into stock funds, bond funds, money funds and index funds.

Monetary Fund: The more famous products are baby products such as Yu 'ebao.

Stock funds and bond funds: both are actively managed funds, and their performance depends more on the fund manager's fund management ability.

Index fund: passive fund, which is also the most respected fund type of Warren Buffett. He once said a meaningful sentence, "buy an index fund and work hard!" " "

3. Which is better, active fund or passive fund?

According to my personal experience. In the bull market, the performance of index funds is indeed better than that of more than half of actively managed funds. However, in bear market and sideways volatile market, the overall performance of active funds is even better.

Buffett's index fund theory is actually more suitable for US stocks. Since the 1980s, the Dow Jones index has been in a volatile upward trend for a long time.

A-shares have a short history of more than 20 years, and they have always been short bulls and long bears. In addition to the big bull market, in most cases, index funds are still difficult to outperform active funds.

So you can't invest in index funds?

Of course not. Index funds are very suitable for fund novices and fixed investment. They insist on fixed investment in the bull market and then make profits in batches. The annualized interest rate must be considerable. For specific knowledge about index funds, you can see my WeChat history article.

4. Why did I give up stock trading to invest in the "base"?

First of all, stocks and funds are good investment means. Many people think that the fund has risen too slowly, and the income after one year is not as good as a daily limit in the stock market.