Many investors will buy funds according to their ratings when choosing funds, especially those with five-star ratings. These investors will think that a five-star fund is selected by a professional rating agency after all. Although it is still performance-oriented, it comprehensively considers risk factors. There is nothing wrong with this idea. Under the same rating agency, the comprehensive quality of a five-star rated fund will be better than that of a three-star rated fund. But a five-star rated fund does not mean that it will definitely make money. Then how should we refer to the rating of the fund?

first of all, it is no problem to select the best fund through the fund rating, but we can't just select the first fund through the fund rating, and we can screen out a series of funds with the help of the fund rating, such as screening out a certain type of fund with more than four stars. Then make further selection. It should be noted that the funds that can participate in the fund rating have the requirements of the establishment period. If you happen to be optimistic about a fund, but find that the fund has not been rated as a star, don't give up in a hurry. Look at the establishment time of the fund, which may not have reached the establishment time of participating in the selection. Generally speaking, institutions will rate funds that have been established for more than 3 years.

Then, after comprehensive comparison and risk consideration, there are several fund rating agencies in the market, such as Shanghai Securities Rating, China Merchants Rating, Morningstar Rating, etc. Each rating agency has a complete rating system. Rating standards are also different. We can comprehensively compare the ratings of several rating agencies. After referring to the rating, the relevant parameters of risk are very important. We need to know the risk level of a fund. What should I pay attention to after screening out funds through fund rating? If we consider it from a sound perspective, we should try our best to choose a fund that has been established for a long time. It cannot be denied that there are many funds with excellent performance among the funds that have been established for a short time, but the funds that have been established for a long time have experienced more market changes and have a higher probability of maintaining good performance continuously. Compared with similar funds, pay attention to the performance of funds in similar funds. Different types of funds have different risk-return characteristics and should be compared separately. Referring to other indicators, in addition to rating, buying a fund also needs to make a comprehensive analysis of the fund, referring to other indicators, such as the increase in each stage, including the annual and quarterly increase, as well as the comprehensive governance level of the fund company, the business ability of the fund manager, volatility, Sharp ratio and so on.