The trend of funds with stable returns is generally a smooth and upward line. This kind of fund can often bring better investment experience, and it is also very suitable for investors with low risk appetite. Besides looking at the performance trend, what other indicators can be used to identify whether the fund's income is stable?

You can look at the investment strategy of the fund. In addition to the influence of the market, the performance of the fund essentially comes from the investment strategy of the fund. In addition to monetary fund and bond fund, which are two kinds of fixed income fund products, funds with fixed income plus strategy are typical representatives of funds with bond assets as the backing and a small number of stock positions to increase their income, and funds with hedging strategy use stocks and stock index futures for long and short hedging. There are not many such funds in the market, and the fixed income+strategy is used.

Looking at the maximum retracement data, we generally think that the maximum retracement index of funds with stable returns does not exceed 3%.

Look at the volatility data and try to choose funds with volatility data less than 5%. The volatility of the fund is the data describing the fluctuation range of the fund. Combined with volatility and maximum retracement data, we can see the profit and loss interval of the fund.

Another conventional indicator is the Sharp ratio. Small fluctuations and retracement indicate that the risk control of the fund is very good, but we should not only look at the risk coefficient, but also look at the profitability of the fund. Sharp ratio can well reflect the profitability of the fund. Generally speaking, the Sharp ratio of funds with relatively stable long-term returns is generally not less than 2.

At the same time, funds with low volatility, low retracement and high Sharp ratio are ideal investment targets, while funds within the above reference data range have a high probability of stable returns.