The first move is to check that the fund rating is above four stars.
If you don't have enough fund expertise, don't know how to evaluate a fund, and are busy at work at ordinary times, and don't have much time to study a fund and read its periodic reports in detail, then fund rating is a very good auxiliary tool for you. It is a simple but effective method to pay regular attention to the evaluation of fund products by rating agencies. Try to choose a fund with a rating of more than four stars, and the risk coefficient is low.
The second measure is to avoid funds that change hands too frequently.
It is not that a fund with too frequent turnover rate must be a bad fund, but from the perspective of risk, when the turnover rate of a fund is too high, the risk coefficient will be higher.
In the long run, if a fund keeps a low turnover rate, it shows that it is valuable for the fund manager to stick to his investment philosophy. Although sometimes some investment ideas are not suitable for a certain stage of the market, it is valuable to keep up with the changes in the market, but few fund managers can do this.
At the same time, some data also show that the cumulative performance of low turnover portfolio is the best, and the performance of high turnover portfolio is the worst.
The fourth measure is to choose a fund manager with the right style.
A good fund manager can seize the opportunity when the market goes up and control the risk well when the market goes down.
A fund manager may be excellent, but you can't recognize his investment philosophy and strategy, and it's hard to have trust. Therefore, we should also consider the fit between the investment style of fund managers and the optimism of investors.
Investment style is the investment characteristic of fund managers' investment philosophy, for example, some are good at growth stocks and some are good at blue chips. It is best to choose a fund manager that suits your investment style.
The fifth measure is to invest in fund companies with stable research teams.
This is also very important. The steady operation of a fund is not the credit of the fund manager alone, but the result of the cooperation of the investment and research team behind it.
A stable fund team can fully inherit the company's best investment culture, ensure the continuity of investment and research style, and the investment performance will be more stable. On the contrary, the management and investment research team frequently change, and the consistency of strategy and style is repeatedly destroyed, so it is naturally difficult to guarantee the sustainability of this fund.
Fifth, reduce investment risks through portfolio investment.
There are many kinds of funds, covering different industries and different themes, and the fund styles are also diverse, including growth, value and balance.
By allocating different types and controlling various types of positions, we can build a fund portfolio that matches our risk tolerance and reduce investment risks through the fund portfolio.
In the financial market, fund investment, like other investments, is accompanied by risks and benefits. As a fund investor, you must first be clear about two things, one is your risk tolerance, and the other is your income target. Don't blindly follow suit.
I hope the above contents are helpful to you.