What are the factors that affect the expected return of the fund?
1, nature of fund products
Different funds have different investment targets, different risks and different expected returns. Generally speaking, index funds and equity funds are more risky and have greater opportunities to obtain expected returns. Therefore, when considering the expected return of the fund, we must first consider the nature of the fund.
2. Professional ability of fund managers
The biggest difference between investment funds and other investment methods is that funds have the characteristics of dispersing risks and ensuring investment professionalism. The professional ability of fund managers determines the degree of optimization of their investment strategies. Whether the fund can make a profit and how to get a higher expected return will always be the decisive factor.
3, the fund manager's ability to resist risks
For investors, excellent fund managers are on the one hand, and there is also a very important fund manager, who determines the market advantage of funds. Generally, the more stable the profitability of fund managers with strong anti-risk ability is, the more difficult it is to have bad situations such as "fund companies running away" and "fund bankruptcy liquidation".
4. Trend of market price change
No matter what you invest in, the investment target is the most basic factor. When the market price of the investment target fluctuates greatly, it will affect the expected return of the fund and even have the possibility of loss. A rising market can make industry funds have higher profit opportunities.
5. Changes in relevant policies
Investors should always pay attention to the update and change of information. A message can cause many chain reactions, such as policy updates or major events (fake vaccine events).
So much about the factors that affect the expected return of the fund, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.