What does merit fund mean?
Excellent fund refers to the fund with excellent performance in previous years. After all, all we can see is the past performance, and no one can predict the future performance. After all, history is always strikingly similar, and good performance is not much different.
Characteristics of excellent funds:
1, long-term in the forefront of the income list, not necessarily the first, but it must be in the forefront for a long time.
2. The trend of net product value is outstanding. The net value of the fund is related to whether investors can make money and how much money they can earn.
3. When it falls, it can keep up with a small increase. Even if the environment deteriorates, it will not fall too hard. The overall environment has improved, and the net value can continue to rise.
4. The holding time is generally long, and the turnover rate of excellent funds is generally low. Because funds are suitable for long-term holding, investors who have bought good funds are reluctant to sell.
5. Being independent of timing means being able to walk out of the big environment and walk out of your own posture. For example, most funds are falling, but they can remain unchanged or even rise.
Excellent funds show that fund managers operate well and there are dividend-paying funds every year. Novice Xiaobai suggested paying attention to such funds, which are generally led by fund managers who have passed through bulls and bears and stood the test of time. Funds with excellent long-term performance depend not only on the investment strength of fund managers, but also on the overall investment and research system and assessment mechanism of fund companies.
After reading the above introduction, I believe everyone can better understand what excellent funds mean. Pay attention to comprehensive consideration of performance, ranking, fund manager and allocation industry when buying funds.