It is not difficult to say that fund trading is difficult, because the fund itself is a professional person doing professional things, and the assets are handed over to professional fund managers. It's not easy to say. The fact is that the fund market is profitable, but not many investors make money in the fund market.

What is the main purpose of buying a fund?

Want to do a good job in fund investment, mainly look at two aspects, one is to look at the investors themselves, and the other is to look at the fund itself.

The first is to look at yourself.

If you want to choose a suitable fund, you need to judge several aspects from the perspective of investors themselves. One is the investor's own risk tolerance.

The degree of risk tolerance determines what kind of fund you can choose to invest in and what kind of fund you choose for asset allocation. As long as the risk tolerance matches the fund, it can produce good investment results. For example, if you are a steady investor, you only heard that stock funds have high returns and ignored their high-risk characteristics. When buying stock funds, the floating losses of funds are large, while the tolerance of stable investors for losses is relatively low. The occurrence of loss will lead to the change of investment mentality and make wrong investment decisions easily.

The second thing to look at is the investment target. What is your income expectation? It is very important to establish a reasonable income expectation. If you want to get higher returns, you may have to bear higher fluctuation risks or have enough patience to make long-term investments.

The third depends on your assets, the time you can invest, and the funds you can invest.

Knowing your own financial situation, you can arrange fund investment more reasonably and choose fund products with appropriate cycle to invest.

Then look at the fund.

To understand a fund, we need to observe multiple indicators from multiple angles.

First of all, after selecting a fund, you must first enter the details page of the fund through the fund's quotation software to understand the basic files of the fund.

Understand the types of funds, bond, index, hybrid and so on. Then understand the risk level of the fund, the risk and income are directly proportional, and the risks of different types of funds are different. Of course, it is also necessary to compare the risks with similar funds. Although they are the same type of funds, some funds have relatively stable investment strategies, less fluctuation and better withdrawal control, so the risks are less. Understand the risk of the fund in similar funds.

Understand the performance ranking of the fund. In the same time interval, comparing the corresponding index and similar funds depends not only on the short-term ranking for one or two months, but also on the long-term ranking for three to five years.

The ranking doesn't have to be high, but at least it can be stable at the upper-middle level.

There is also the award-winning situation of the fund, such as the Golden Bull Award, which is a very authoritative award in the industry and a comprehensive evaluation of the fund. If a fund can win the Taurus Fund Award, the fund will certainly not be bad.

According to these basic information, make a basic judgment on whether the fund can be included in its own cash pool.

Then understand the scale, investment target and investment scope of the fund.

Understand the size of the fund because the size of the fund has a certain impact on the fund. If the scale of the fund is too small, the risk of liquidation will easily occur, while if the scale of the fund is too large, the flexibility of operation will be even worse. Especially for some funds whose scale suddenly skyrockets, fund managers may find it difficult to adapt.

In addition, we should also understand the investment style of the fund and the configuration of the industry.

If the investment style of a fund is always changing, it is definitely not very good. It may be that fund managers change frequently, or it may be that the style of fund managers is changeable.

The stability of fund style reflects the stability of fund performance to some extent. If a fund manager is optimistic about a certain industry or stock for a long time, he will generally choose to hold it for a long time.

There is also an investment industry with long-term development potential, otherwise the fund may be weak in the later period.

I hope the above contents are helpful to you.