Investment funds are only a question of subscription and redemption, but many investors have encountered difficulties in the first step. There are so many types of funds, how to choose? So the fund rating came into being. The following is an analysis of the use of fund ratings brought by Bian Xiao, hoping to help everyone!

It should be noted that the fund rating is an affirmation of the historical performance level and does not represent the future. Investors can only use it as a reference factor. When choosing a fund, they must comprehensively consider the following factors:

1, capital return rate

The fund withdrawal rate refers to the degree to which the net value of the fund falls from the highest position to the lowest position within a period of time. Generally speaking, the greater the capital withdrawal rate, the greater the capital fluctuation and instability, and the smaller the capital withdrawal rate, the smaller the capital fluctuation and stability.

2. Historical performance of fund managers

The historical performance of fund managers reflects the investment level of fund managers to a certain extent and affects the trend of fund net value. Investors try to choose funds with good historical performance to invest.

3. Fund investment objectives.

The trend of fund investment target will also affect the trend of fund net value and investors' expectation of future income. Investors should choose those funds whose fund targets are on the rise and have great development potential and prospects.

4. Standard deviation

The standard deviation measures the fluctuation range of the total rate of return in a certain period. The greater the standard deviation, the greater the possible fluctuation of the future net value of the fund, the smaller the stability and the higher the risk.

Let's analyze their operational ideas first.

Fund classification

Morningstar fund classification is based on the analysis of fund portfolio, and reflects the investment management ability of fund managers by comparing the risk-adjusted income of fund history. With the development of economy and market, there are more and more kinds of funds. Morningstar divides China and publicly issued funds into stock funds, mixed funds (radical allocation funds, standard mixed funds and conservative mixed funds), convertible bonds, bond funds (radical bond funds, ordinary bond funds, pure bond funds and short-term bond funds), money market funds and capital preservation funds.

Second, measure income.

How does Morningstar Rating measure the returns of these funds? Monthly return rate. The monthly rate of return can reflect the income of the fund held within one month.

Three. MRAR

MRAR is MorningstarRisk-AdjustedReturn, which is the abbreviation of Morningstar risk-adjusted return. On the basis of utility theory, according to the fluctuation of monthly return rate of funds, the return rate of funds is adjusted by punishing risks. The rule is: the greater the fluctuation, the more punishment,

Significance of fund rating

1. From the perspective of investors, rating results are an important reference indicator of their investment behavior.

2. From the perspective of fund internal management, rating can restrain and motivate fund managers.

3. From the fund manager's point of view, rating can feed back the market information adjustment strategy.

4. From the perspective of market supervision department, rating can promote the healthy development of fund market.

5. Judging from the development of the fund industry itself, rating can promote the healthy development of the fund market.

Matters needing attention in purchasing funds

1. Pay attention to the proportion of fund types according to your risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

3. Pay attention to the later maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

4. Be careful not to talk about heroes by short-term ups and downs. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

5. Pay attention to flexible investment strategies such as stable and worry-free fixed investment, affordable and simple dividend conversion.