As long as you know the fund's net growth rate and dividend ratio, you can know the expected annualized expected rate of return on fund investment. However, it should be noted that the performance of the fund cannot be fully expressed by a simple expected annualized expected rate of return. You also need to consider the influence of other factors on the expected annualized expected rate of return and the long-term trend of the expected annualized expected rate of return in order to objectively judge the true performance of the fund. How?

I. Understanding Fund Performance

1. Compare the expected annualized expected return of the fund with the performance benchmark of the fund.

Each fund has its own agreed performance benchmark, which can be found in the fund contract and prospectus. However, this performance benchmark is rarely valued by individual investors. For actively managed stock funds, the expected annualized expected return can be compared with the trend of the stock market. If a fund performs better than the market index most of the time, then you can say that the management of this fund is effective, and the management company that manages this fund has excellent research and investment capabilities.

2. Compare the expected annualized expected return of this fund with other similar funds.

Different types of funds should be treated differently. You can't directly compare the performance of different types of funds. For example, it is not appropriate to compare the performance of bond funds with that of equity funds.

3. Compare the expected annualized expected return of the fund with its own historical expected annualized expected return.

According to the investment principles of the fund and the operating philosophy of the fund manager, see if the performance of the fund meets your expectations. When the performance of the fund is far from its own expectations, it is necessary to look back to see if the fund manager has violated the investment principles and concepts promised in the fund contract.

4. Compare the current expected annualized expected return of the fund with the historical expected annualized expected return.

Only stable performance is the real performance, occasional success may be just luck, and occasional failure may be only temporary. You should comprehensively judge the performance of the fund from a long-term perspective.

5. With the help of the evaluation results of professional fund research institutions.

With the help of the evaluation results of professional fund research institutions, such as the fund review of the Good Buy Fund Research Center. For investors who are new to the market, their own comparison can enhance their intuitive understanding of the fund, and combined with the evaluation and research of the fund by professional fund research institutions, they can comprehensively and comprehensively understand the fund and quickly improve its investment ability.

Second, check the fund ranking.

The fund ranking of authoritative rating agencies is to sort out and sort the performance and expected annualized expected return of funds. Top funds have indeed proved their investment value through their excellent performance in the past period. However, the fund ranking information alone cannot be used as all the reasons for you to invest in a fund. Because the expected annualized expected return of the fund in the past cannot represent its expected annualized expected return in the future, its fund manager or investment research team may change in the future. In addition, each fund has its own characteristics of risk expectation and annualized expected return. Before buying a fund, investors should carefully analyze whether the top fund style suits them.

Third, design a good investment portfolio

Establishing a portfolio to diversify investment, in layman's terms, is not to put eggs in one basket. Investors can choose fund varieties according to their own conditions, and then build a portfolio. Investors can divide personal investment into two parts. The first part focuses on expected annualized expected returns, and invests in equity funds or balanced funds; The second part focuses on safety and invests in money market funds, short-term debt funds and demand deposits.

Many touch-buy-hold funds can't be considered as fund portfolios, and any investment should follow certain ideas. The selection and portfolio construction of funds is a professional and complicated matter, and investors can consider using professional financial consultants to help them do this part of the work well.

Fourth, choose a good investment opportunity.

In the long run, as long as the China stock market is still rising, it is right to buy funds at any time. But in the short term, it is best to enter the market at a low level, that is, when the stock market fluctuates or falls sharply. In actual investment, it is difficult to accurately grasp the ups and downs. In fact, it often happens that the stock market falls shortly after buying, or redeems in a hurry, but the stock market has soared. So our view is "the right time". Choose a relatively short time to buy and make medium and long-term investments. When you need to use cash, you should also plan ahead and set aside a period of time, so that you can choose a relatively high time to redeem it.