When rating funds, most institutions use star rating, generally according to 1 ~5 stars. The higher the star rating, the better the evaluation. However, not all institutions can rate funds. According to the regulations of China Asset Management Association, there are currently seven institutions that can engage in fund rating business.
Fund rating agencies include Morningstar Information, Tianxiang Investment, Ji 'an Jin Xin three fund research institutions and four brokerage fund research departments. Galaxy Securities, China Merchants Securities, Shanghai Securities and Haitong Securities; In addition, three official media (china securities journal, shanghai securities news and Securities Times) can hold fund awards.
Steps of fund rating: first, classify funds; Measure the income of the fund; Calculate the risk-adjusted income of the fund; Divided into five stars according to their stars. It is worth noting that the star rating given by the same fund in different institutions will be different.
When investing in funds, we should not only pay attention to the fund rating, but also pay attention to other aspects, such as the time of fund establishment, fund scale, fund manager's ability, fund custodian and fund company to which the fund belongs. Usually, when investing in funds, we choose funds launched by large fund companies, and such funds are generally equipped with good fund managers.
Finally, when investing in funds, users should try to choose to intervene in positions with low net worth and avoid buying in positions with high net worth of funds. When investing, users must use personal money instead of borrowing money to invest, and they must insist on holding it after investing, so they can't get better returns in the short term. This is what everyone should pay special attention to.