Compared with stocks, the risk of funds is lower, but this does not mean that investors will not lose money when investing in funds. Once they buy bad funds, investors will also suffer huge losses. So, how should investors choose funds? Next, Bian Xiao will share with you the methods to be considered when purchasing funds.
So what is the correct way to choose a fund?
1. Choose a fund that suits your own fund type and investment strategy.
Different types of funds often have different investment directions, and the investor strategy of some funds determines the future performance of funds.
2. Pay attention to performance, but not just performance; Look at the performance, but also look at how the performance came from.
Investors must look at the performance when choosing a fund, but when looking at the performance, they should pay attention to how the performance is made (not that the better the performance, the better the fund; Many times, funds with poor performance may also be good funds.
While looking at the performance, we should pay attention to how the fund manager invests-the specific way is to look at the changes in the shareholding of the funds managed by the fund manager in the past few years in detail, combined with the market environment at that time. (Of course, this may be too much for individual investors. )
3. Pay attention to the withdrawal of funds.
Pay attention to the withdrawal of funds, especially when the market plummets.
In addition, it is necessary to judge how fund managers control risks through different dimensions such as fund position, industry distribution, stock concentration, shareholding type and valuation.
4. Pay attention to the investment philosophy of fund managers.
The best way to know the fund manager is to communicate with the fund manager directly.
If there is no such opportunity, we can understand the investment philosophy and style of fund managers by learning their resumes and watching media interviews with them.
Of course, what you say depends on what you do-look at the investment style of fund managers in combination with the performance of funds and the changes in fund positions.
The above points are the most important points for the author to choose to actively manage the fund, and the rest depends on the performance benchmark, fund scale, fund holding institution and fund rate. Of course, the things mentioned later may not be that important to me.
Okay, did you find it? If you really know how to choose a good fund, it may actually mean that you know a lot about stock or bond investment, so those who know a lot about stock or bond investors may not invest in funds. Those who invest in funds actually don't know how to invest in stocks and bonds. Of course, it is often difficult for them to choose excellent funds.
Investors choose funds mainly from the following aspects: the operation ability of fund managers, fund investment targets, market conditions, fund withdrawal rate and standard deviation, fund establishment time and rating.
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. Fund investment objectives.
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.
5. The establishment time and rating of the fund.
The shorter the fund is established, the lower the rating and the higher the risk. Investors should choose funds that have been traded for a long time and have been established for at least 1 year and have a high rating.
What should I consider when buying a fund?
What types of funds can be divided into?
1, depending on the investment object.
It can be divided into money funds, bond funds, hybrid funds, index funds, stock funds and special funds.
2, according to the different feeding methods.
Can be divided into Public Offering of Fund and private equity funds. Public offering of funds means that fund companies can publicly raise and publicize; Private equity funds cannot be publicized.
3, according to the different ways of establishment
Can be divided into open-end funds and closed-end funds. Open-end funds are funds that can be purchased and redeemed at any time, so the share of open-end funds is changing; Closed-end fund means that the share is not fixed and cannot be purchased and redeemed during the closed period.
4, according to the different trading places.
It can be divided into on-site funds and off-site funds. On-site funds are funds listed on the exchange, and generally have independent quotes to look at; OTC funds refer to funds traded outside the exchange, such as funds purchased through Alipay and WeChat.