These investors will think that five-star funds are selected by professional rating agencies after all. Although it is still performance-oriented, it comprehensively considers risk factors. There is nothing wrong with this idea. Under the same rating agency, the comprehensive quality of five-star rated funds will be better than that of three-star rated funds.
But a five-star rated fund doesn't necessarily make money. So how should we refer to the rating of the fund?
First of all, choose the best among the best
It is no problem to choose a fund by fund rating, but you can't just choose the top-ranked fund by fund rating. You can use fund rating to screen out a series of funds, such as a certain type of fund with more than four stars. Then make a further choice. It should be noted that funds that can participate in fund rating have requirements for the establishment period. If you happen to be optimistic about a fund, only to find that it has not been rated as a star, don't give up in a hurry. Looking at the establishment time of the fund, it may not be the time to participate in the selection. Generally speaking, institutions will rate funds established for more than three years.
Then, comprehensive comparison and risk consideration.
There are several fund rating agencies in the market, such as Shanghai Stock Exchange, China Merchants and Morningstar. Each rating agency has a complete rating system. The rating standards are also different. We can comprehensively compare the ratings of several rating agencies. After referring to the rating, the relevant parameters of risk are very important. We need to know the risk level of a fund.
What should I pay attention to after screening out funds through fund rating?
If we consider it from a sound perspective, we should try to choose a fund that has been established for a long time. Undeniably, there are many funds with excellent performance in the short-established funds, but the funds with long-established time have experienced more market changes, and the probability of maintaining good performance is greater.
Compare similar funds and pay attention to the performance of funds in similar funds. Different types of funds have different risk-return characteristics and should be compared separately.
Referring to other indicators, in addition to rating, buying a fund also needs to make a comprehensive analysis of the fund, referring to other indicators, such as the increase in each stage, including the annual and quarterly increase, as well as the comprehensive governance level of the fund company, the business ability of the fund manager, volatility, Sharp ratio and so on.