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Alpha value of fund
Five key indicators to judge whether the fund works.

1. Cumulative net growth rate

This is a key indicator of the fund's long-term performance, usually 3-.

Time period statistics for more than 5 years.

It measures the share of a fund from the beginning of investment to the present.

Total increase in net worth. For example, a three-year fund

The net value increased from 1 yuan to 1.8 yuan, and its cumulative net value increased.

The growth rate is 80%.

Through this indicator, we can see the long-term profitability of the fund. The higher the data, the better the long-term performance.

2. Annual rate of return

This is the average annual return on investment of the fund.

For example, the annualized rate of return of a fund in the past three years is

12%, which means that the average income can be obtained by investing in this fund every year.

12% rate of return.

This is the most commonly used index to measure the short-term performance of the fund.

According to the profitability, the higher, the stronger.

The annualized rate of return is generally not directly displayed, and can be

Taking historical ups and downs as an example, the increase in the past three years is

45%, then its average annualized income is 15%.

If it is a holding fund, the calculation formula is:

Investment period income/principal/investment days *365.

3. Alpha value

This is an index used to measure the investment skills of fund managers.

For example, Alpha=0.8, which means the year of the fund manager.

The return on investment exceeds the market by 0.8%.

When Alpha >; 0, indicating the return on investment of the fund manager.

The rate is higher than the market average, not higher than 0.5.

Wrong, exceeding 1 is excellent performance.

4. Sharp ratio

This is an index to measure the risk-return characteristics of funds.

The greater the value, it means that every unit of the total wind is borne by the fund.

The greater the risk, the more excess returns will be obtained.

For example, if the Sharp ratio is 1.5, then every 1% wind will be borne.

Risk, the fund can get an excess return of 1.5%.

This is a risk-adjusted income indicator, which can be compared with

Comparing the risk-return characteristics of different funds, 1 or above belongs to

Ok, more than 2 is ideal.

5. Maximum retreat

This is the biggest decline in the net value of the fund in a certain period of time.

Degree, used to measure the downside risk of the fund.

For example, the maximum withdrawal of a fund in 1 year is 15%, as shown in the table.

This means that the net value of this fund will fall within 1 year at most.

15%。

The smaller the value, the smaller the downside risk the fund bears. no

The evaluation criteria of the same type of funds are different, and there is no specific one.

Measure value. Generally speaking, it does not exceed the average level of similar products.

The benchmark of level and performance comparison is good.