There are many Public Offering of Fund in the market. Mainstream products include stock, hybrid, bond and money market funds. Even the same type of funds, the performance is also very different. So what should I consider before buying a fund? Today, Bian Xiao will share with you the questions you need to ask yourself before buying a fund, for your reference only!

Every time we buy a fund, we need to ask ourselves five classic questions, namely:

Question 1: What is the performance of the fund?

(1) Buy a fund and count the stars. It makes sense to compare stars among similar products. We advise investors to choose products with four or more stars in the same category in the past three years and five years when purchasing funds.

(2) Most investors in the market will still use the rate of return to choose products. Should we pay attention to short-term returns at this time? Here, I suggest investors pay attention to long-term returns, at least at the level of more than one year's return.

Why do you think so? We all know that funds are past performance, and the source of performance may be concentrated in a certain sector or awkward stocks. However, if the fund manager does not adjust the position in time, perhaps the next market will not be very beneficial to the performance of this fund, and perhaps this fund will have the risk of falling next.

Therefore, from this perspective, we hope that investors will choose funds from a long-term perspective, rather than products from short-term performance.

In our opinion, we prefer the champion of long-distance running. For example, if we look at the annualized income, there are only a handful of products that can rank in the top 1/2 and top 1/3 of the same category. We think these products deserve investors' attention and tracking.

Question 2: What are the risks of the fund?

Buying a fund is always risky, and the risk difference between funds is still very large. For investors with low risk tolerance, we suggest paying attention to similar funds with low risk rating.

What do we use to measure the risk of the fund? Generally speaking, we will use the standard deviation to measure the risk of the fund, and the standard deviation refers to the range of net value fluctuation. As mentioned earlier, if the overall risk tolerance is not high, investors are advised to choose products with low or low risk evaluation.

Question 3: What does the fund invest in?

We need to establish a reasonable expected return on the performance of the whole fund. At this time, we need to know what the fund manager bought in the fund portfolio.

In the market, publicly issued funds can buy stocks, bonds or both. Some fund managers like value stocks, while others like growth stocks. Some fund managers like big and famous listed companies, while others choose small-cap stocks. So we need to understand the fund manager's position preference from the position angle.

Specifically, on the one hand, we need to pay attention to the position of fund managers in the portfolio. The second point also includes the industry configuration preference on the position, or the preference for individual stock selection. In addition, we can also see whether the investment style of the whole fund is relatively stable.

The fourth question: Who is the fund manager?

The fund manager holds the investment power and has a very important influence on the management and performance of the whole fund. Many times, the strategy of the fund manager will change after leaving the company, which makes the performance of the whole fund unstable. There are also new fund managers whose performance will be better after leaving.

Generally speaking, fund managers are very important. How do we choose fund managers? We usually look at whether the fund manager has experienced a complete market cycle. We generally think that 3-5 years is a cycle. Fund managers who have passed the test of the complete market cycle will have more mature investment concepts and more stable investment styles and strategies.

Fifth question: What is the cost of the fund?

Buying a fund may not necessarily make money, but it must be paid. We need to know what the expenses of the fund are composed of, which generally includes one-time expenses and annual operating expenses. One-time expenses include subscription fees and redemption fees, and annual operating expenses refer to management fees and custody fees. Generally speaking, investors should pay more attention to the cost of bond products or fixed income funds, because the cost is corrosive to long-term investment.

To sum up, these five questions are classic when investors buy funds. I hope you can master these five methods, accumulate your own experience in continuous investment practice, and find a suitable investment method.

Tip:

First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, 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.

Third, pay attention to the post-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.

Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in the short term. 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.

Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.

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