The first is income. What kind of increase should be set for choosing high-yield funds to realize rapid asset appreciation? It is ideal to double the performance of the fund within three years. We can position the fund's income as a fund with an annualized income of more than 30% in the past three years. Take this as one of the screening conditions.
Then there is the retreat. Rationally speaking, income is positively related to risk, and people who want to pursue high income often have to accept greater retreat. Therefore, the requirements for retracement should be relaxed appropriately, and the target annualized rate of return should be approved as the maximum allowable retracement, which is a relatively acceptable value. Corresponding to the above, for example, the maximum withdrawal set by the fund in the last three years is within -30%.
Then there is the price/performance ratio. At the same time, there is almost no investment, and we don't want to exchange smaller risks for higher excess returns. So the Sharp ratio is also an important indicator. Sharp's ratio is equal to 1, which means that we bear the risk of 1 unit and get the profit of 1 unit. The higher the Sharp ratio, the higher the excess return of the fund under the same risk.
Finally, choose a fund company. It is not difficult to find that even funds with the same industry theme are produced by different fund companies, and their historical returns are far from each other. As the saying goes, the strong are always strong, and a good fund company has stronger comprehensive strength, making it easier to launch a good fund. Therefore, it is very important to choose the right fund company.