When investing in funds, it is very important to know the return rate of funds. Fund withdrawal rate refers to the decline of the fund from the highest point to the lowest point in a period of time, which reflects the performance of the fund when the market falls. When investing in funds, we need to compare the withdrawal rates of different funds to determine the risks and benefits.
The calculation formula of fund withdrawal rate is (highest net value-lowest net value)/highest net value, in which the highest net value is the highest net value of the fund in a period of time and the lowest net value is the lowest net value of the fund in that period of time. Usually we use a one-year or three-year cycle to calculate the rate of capital withdrawal.
The lower the withdrawal rate, the better the performance of the fund. Because the withdrawal rate is the performance of the fund when the market falls, we need to pay attention to the withdrawal rate of the fund and its historical performance. If a fund has a low withdrawal rate and has performed well in the past few years, then this fund may be a relatively stable investment choice.
Investors should note that the retracement rate is only a part of the fund performance, and we also need to pay attention to other indicators such as Sharp ratio and Alpha value. The withdrawal rate is a very important indicator, because it can help us better understand the risks and benefits of funds, so as to make more informed investment decisions.
For investors, it is very important to know the return rate of funds. We need to carefully compare the withdrawal rate and historical performance of different funds to determine the best investment portfolio. Rational use of the withdrawal rate can better control risks and achieve long-term financial management goals.