As for the standard deviation of fund income, it measures the fluctuation of fund income by measuring the deviation of a fund's daily income from the average income of the fund. Generally speaking, the greater the standard deviation of the fund's rate of return, the greater the corresponding risk of the fund.
For example, suppose there are two funds in operation for a period of time, and the growth rates of the two funds are the same at the end of this period. But the standard deviation of one fund is 9%, and that of the other fund is 18%. Then, we can learn from it that the latter fluctuates greatly during this period, and even if the final net increase is the same, the investment risk of the latter is still greater than that of the former. This kind of fund with large fluctuation is more suitable for high-risk preference investors and used as a fixed investment fund.
As for the maximum retracement, it is mainly used to measure the biggest loss that fund investors may face in a certain period of time. When calculating the maximum retracement, the time of a fund investment cycle is generally selected first. Assuming that the start time is T 1 and the end time is T2, then the highest net value of fund products is subtracted from the lowest net value of fund products in this process, and then the obtained value is compared with the net value of the highest point, so the maximum retracement value in this period can be obtained.
If the growth rates of the two funds are the same, but the maximum withdrawal of one fund is higher than that of the other, then it can be said that the fund with higher maximum withdrawal value has greater potential loss risk.
As for the Sharp ratio, it represents the return risk performance of the fund by measuring the risk-return ratio of the fund. Specifically, the total risk of each unit assumed by the fund under normal circumstances is used to compare how much excess income the fund generates under the risk-free interest rate. Therefore, the greater the Sharp ratio, the better the return risk performance of the fund. Its calculation formula is: Sharp ratio = (annualized rate of return on funds-risk-free interest rate)/annualized volatility of funds.