Low beta means that the volatility level of an individual stock is lower than the volatility level of the market as a whole.

Beta value is an indicator that measures the relationship between individual stock fluctuations and the overall market volatility level. For example, if the beta value is 0.9, when the market rises by 20%, the individual stock's increase is 20%*0.9=18%.

Extended information: Stock beta value: Beta value is used to quantify the fluctuation of individual investment instruments relative to the entire market, separating the price changes caused by individual risks from the fluctuations of the entire market.

The higher the beta value of a security, the greater the potential risk and the higher the investment return; conversely, the lower the beta value of the security, the smaller the risk and the lower the investment return.

The beta value is calculated using the regression method, which determines the risk caused by the fluctuation of the entire market as 1.

When the price fluctuation of an asset is consistent with the fluctuation of the entire market, its beta value is also equal to 1; if the price fluctuation is greater than that of the entire market, its beta value is greater than 1; if the price fluctuation is less than the market fluctuation, its beta value is less than 1.

For example, the Shanghai Composite Index represents the entire market, and its beta value is determined to be 1.

When the Shanghai Composite Index rises by 10%, the price of a certain stock also rises by 10%. The increase between the two is the same, and the risk is also the same. The beta value, an indicator to quantify the individual risk of the stock, is also 1.

If the beta value of the stock is 0.5, its fluctuation range is only 1/2 of the Shanghai Composite Index. When the Shanghai Composite Index rises by 10%, the stock only rises by 5%.

Beta in a fund: The beta coefficient is a risk coefficient that measures the volatility of a stock or fund relative to the entire market.

The beta in a fund is an indicator of the fund's risk coefficient.

The higher the beta value of a fund, the greater the potential risk of the fund but the relatively higher rate of return; conversely, the lower the beta value of the fund, the smaller the risk of the fund but the relatively lower return on investment.

If investors who cannot bear greater risks should choose a fund with a smaller beta value when choosing a fund, investors who want to pursue higher returns and can tolerate a certain amount of risk can choose a fund with a high beta value.

Many investors choose funds based on beta, but how do they choose?

Generally speaking, the fund beta value is equal to 1, which means that when the fund manager manages the fund, he and the entire market are in the same position.

For example, if the index rises by 10% that day, the fund's income will also increase by 10%; conversely, if the beta value is greater than 1, it means that the fund's return exceeds the index at this time.

And less than 1 means that the fund return is not as good as the index return.