1. Resume of fund manager. Because funds are managed by people, the key to good management is people.

2. Past performance of the Fund. If only the bull market goes up and the bear market goes down, then be careful. It is best to look at annualized rate of return, bull market and bear market.

3. The fund's past risk control ability. See if the fund can predict in advance before the bull market peaks. Position control and asset allocation of funds in bear market.

4. The fund's recent heavy positions.

Investors' self-assessment:

If you are a fairly wealthy investor with a large amount of property, and at the same time, a large amount of property ensures that you don't have to run around for a living, then you may use various investment tools to manage your money, including investment funds. But if you are a person with a small amount of assets (unfortunately, 99% of people belong to this category) and want to invest with your property, and you lack time, professional knowledge and all kinds of information to manage your money, then investment funds are your ideal investment tools.

After a certain understanding of the operation principle of the fund, investors are ready to invest. They should make a self-evaluation before investing. There is a saying: don't fight an unprepared battle. First of all, be a "bosom friend". Self-assessment should include the following aspects:

1. Analyze your living conditions.

Including several aspects: family status, personality of family members, income level, personal economic burden, expectation of future income and outlook on life.

2. Know your investment goals.

That is to say, according to what we said above, whether you pay attention to the current income or the long-term growth of capital or the balance between the two determines whether you invest in growth, income or balanced funds.

3. Check your risk tolerance.

4. Determine what kind of investor you belong to.

Type of investor:

A person's attitude towards risk can be roughly divided into four types: positive, gentle, conservative and extremely conservative.

According to the following questions, we can roughly judge what kind of investors belong to:

1. Do investors like activities with obvious gambling nature?

2. Can investors dispel too many concerns?

3. Are investors more willing to invest their money in other ways than in the bank?

4. Do investors have confidence in their investment choices?

5. Do investors prefer to manage their investments?

If the answers are all yes, investors may be radical; If the answer is all negative or only one positive, it is extremely conservative; If there are two or four affirmative answers, investors are moderate or conservative.

Funds are long-term investments. Unlike stocks, which are bought today and sold tomorrow, they can be accessed at any time like banks. Choosing a fund as an investment tool means that some personal assets of investors are not ready for long-term use. As a rational investor, we should look at ourselves objectively in order to make a wise choice in investment.