The easiest way is to look at the investment target. Whether the fund invests in stocks (stock funds), bonds (bond funds), stock bonds (balanced funds) or money market funds. The expected returns and risks of the above-mentioned types of funds are stock-type, balanced-type, bond-type and money-market funds from high to low.

2, understand the risk coefficient

Risk coefficient is an index to evaluate fund risk, which is usually expressed by standard deviation, beta coefficient and Sharp coefficient. The smaller the standard deviation, the smaller the fluctuation risk; Beta coefficient is less than 1, the smaller the risk. The higher the Sharp index, the better. The higher the index, the higher the return of the fund after considering the risk factors, and the more favorable it is for investors.

Everyone will have different considerations when investing because of their age, income and family status, which leads to different returns and risks pursued by everyone. It's just that risk and reward are always positively related. If you choose a growth fund, you must be psychologically prepared to accept high risks.

3. Primary election fund

For tier-one funds, visit fund management companies to investigate their management level, investment decision-making mechanism, personnel who mainly influence decision-making, fund managers, researchers, portfolio status and future investment tendency.

In-depth understanding of key personnel's investment philosophy, investment strategy, investment style and how to treat risks and benefits. Discuss investment ideas and psychology with fund managers, and think about the accuracy, operability and verifiability of investment ideas. Instead of discussing how to choose stocks, how to look at the quantity and structure of market capital supply and demand, various investment ideas and trends in the market, the future popularity of different stocks and sectors, and the limitations of capital analysis and timing. Appraisers and financial advisers must have a lot of practical experience.

: a fund book that is more suitable for entry.

I. Investment Guide for Index Funds

I have read this book more than five times. It's so practical, the kind I taught with my hands. It's no exaggeration to say that it has opened my second pulse as governor, and some problems I don't understand have been solved after reading this book.

Second, "teach you to buy funds by hand"

This book has a wide range of contents, introducing money funds, bond funds, index funds, stock funds, QDII funds, ETF funds, quantitative funds and so on. Let's learn about all fund types.