The standard deviation of income measures the deviation between the daily income and the average income of the fund, which is used to measure the volatility of the fund's income. The greater the standard deviation of the fund, the greater the corresponding risk.

The beta coefficient (β) of a fund can usually be divided into two parts, that is, fund income = α+β * market ups and downs. Part of the total income is related to the α coefficient (α), which represents the excess income of the fund. This part of the income has nothing to do with market ups and downs, but measures the investment management ability of fund managers. Another part of the total income is related to the beta coefficient (β), which measures the direction and extent of the price change of the fund relative to the whole market.

When β

When 0

When β= 1, the performance of the representative fund and the market basically shows consistent changes;

When β >; At 1, the performance of the fund and the market basically changes in the same direction, and the fluctuation is greater than that of the market.

The maximum withdrawal of funds measures the biggest loss that investors may face in a certain period of time. The specific calculation method is: push back at any historical point in the selected period, and the maximum rate of return when the net product value reaches the lowest point exits.

Sharp ratio of the fund Sharp ratio measures the risk-return ratio of the fund, that is, how much excess income can be generated by the total risk per unit relative to the risk-free interest rate. Therefore, the greater the Sharp ratio, the better the return risk performance of the fund. Sharp ratio = (annualized rate of return on funds-risk-free interest rate)/annualized volatility of funds. For example, if the Sharp ratio of Fund A is 0.5 and the average Sharp ratio of the same type of fund is 0.2, it means that the risk-return performance of Fund A is better than the average level of the same type of fund.

The tracking error of the fund is the main index to evaluate the index fund, which measures the deviation risk between the return of the fund portfolio and the return of the underlying index, that is, the close degree between the trend of the fund and the underlying index. The smaller the tracking error, the closer the trend of the fund and the index is, which means that investors can get a return closer to the index performance.