1. Look at the fund rating. Looking at the fund rating is very simple, just "count the stars".

Qualified third-party fund rating agencies select funds with relatively high investment value and good performance sustainability from thousands of funds across the market for ratings every quarter.

That said, you may see some "stars" in the fund's ratings.

5 stars is the highest rating and 1 star is the lowest.

It should be noted that not being rated does not necessarily mean poor performance, or it may be that the fund has been established for a short period of time and is temporarily not included in the rating.

2. Look at the stage rise and fall. Click to open a fund. We can all see the stage rise and fall since its establishment on the page.

For short-term increases and decreases, we can look at the increases in the past January, March and June.

For long-term increases and decreases, we can look at the increases in the past year, the past two years, and the past three years.

Stage increases and decreases should not only be compared with performance standards, but also compared with the performance of similar funds.

If a fund's short-term and long-term gains rank in the top 1/4 of similar funds most of the time, then this fund should be pretty good.

If the performance ranking for a certain period of time is very low, we need to consider whether the fund has changed its fund manager, whether the assets it holds is a mistake, whether its investment strategy has changed, etc.

3. Look at the net worth trend. The net worth trend is not the only criterion for judging whether a fund is excellent, but it must be an important criterion.

The stage increase we mentioned above represents the performance result of the fund in a certain period, and the net value trend is the process of achieving this result.

A good fund should have several characteristics in its net worth trend: it can keep up with the bull market, lose less money in the bear market, and its performance is as stable as possible.

From the cumulative net value trend of a fund, we can also judge the fund's drawdown control in different time periods.

4. Look at the fund manager. In the fund manager's introduction, we can see the fund manager's years of service, experience, etc. At this time, we need to "score" the fund manager.

As the saying goes, "The older you are, the more spicy you are." Fund managers are a profession where the older they are, the more valuable they are.

Fund managers who have been baptized by the market are often more reliable.

So what is the standard for "old"?

Tou Er’s view is that it is best for a fund manager to have more than 3-5 years of service as a fund manager.

To be more cautious, you should cross the Bull and Bear at least once.

5. Look at the fund size. The fund size is too small, which is what we call a "mini fund", and it faces certain liquidation risks.

Excessive scale means that fund managers have greater management pressure and it is difficult to turn around the ship.

You should try to avoid funds with a fund size of less than 100 million yuan to avoid liquidation.

In addition to looking at the size of a single fund, we also need to look at the total size of the funds managed by the fund manager and the number of funds.

Having too many funds will make fund managers overwhelmed.

6. Look at fund positions. Through fund positions and individual stocks, we can see a lot of content, such as investment style, investment philosophy, preference for industry stocks and other information.

Sometimes, we will find that the fund name and the stocks in the fund position do not exactly match. For example, a pharmaceutical-themed fund has a heavy position in a lot of liquor stocks.

For another example, a fund that is steady and striving for progress suddenly increases its stock position.

When there is any inconsistency with the promotional content, we need to pay attention.

7. Look at the holder structure. The fund holder structure shows the proportion of institutional investors and individual investors in this fund.

For investment two, I prefer funds with a relatively high proportion of institutional investors, which can be maintained at 30% to 80%.

Because institutional investors are more professional than most individual investors.

There are many institutional investors, which means the fund is recognized by professionals.

However, it is not recommended to choose a fund with a small fund size and institutional investors accounting for more than 90%.

If such a fund is redeemed by institutional investors, its scale will plummet.

Individual investors will face liquidation risks.