Investors can choose funds according to the following methods:
1, the operational ability of the fund manager
The management ability of fund managers affects the performance of funds and the trend of fund net value. Investors should try their best to choose funds whose managers have strong operational ability and whose managed funds have high expected returns.
2. The situation of fund investment target: The trend of fund investment target will also affect the trend of fund net value and investors' expectation of future income. Investors should choose those funds whose fund targets are on the rise and have great development potential and prospects.
3. Market situation
When the market is in a bear market, investors try to choose bond funds and money funds to avoid risks. In the bull market, investors try to choose equity funds to obtain greater expected returns.
4. Capital withdrawal rate and standard deviation.
The standard deviation measures the fluctuation range of the total rate of return in a certain period. The greater the standard deviation, the greater the possible fluctuation of the future net value of the fund, the smaller the stability and the higher the risk.
The maximum withdrawal rate refers to the maximum loss rate that may occur at any time when purchasing funds. The higher the maximum withdrawal rate, the greater the loss. Therefore, investors try to choose funds with smaller standard deviation and lower maximum withdrawal rate.