1. Return rate of funds
Fund withdrawal rate refers to the decline of fund net value from the highest position to the lowest position in a period of time. Generally speaking, the greater the capital withdrawal rate, the greater the capital fluctuation and instability, and the smaller the capital withdrawal rate, the smaller the capital fluctuation and relative stability.
2. Historical performance of fund managers
The historical performance of fund managers reflects the investment level of fund managers to a certain extent and affects the trend of fund net value. Investors should try to choose funds with good historical performance to invest.
3. Fund investment objectives
The trend of fund investment target will also affect the trend of fund net value. Investors should choose funds with great development potential and prospects.
4. The establishment time and rating of the fund.
The shorter the fund is established, the lower the rating level and the higher the risk. Investors should choose funds that have been traded for a long time, the establishment time is at least 1 year, and the higher the rating.
5. Funds that adapt to their own investment preferences
When choosing a fund, a novice should choose a fund that suits his investment preference, rather than a fund that is beyond his risk tolerance. Generally speaking, for prudent investors, you can choose medium and low risk funds, and for radical investors, you can choose medium and high risk funds.
6. 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 fluctuation of the future net value of the fund, the smaller the stability and the higher the risk.
In addition, novices can also choose funds according to market conditions, that is, in the bear market stage, they should try to choose bond funds and monetary funds to avoid risks, and in the bull market stage, investors should try to choose stock funds to obtain greater expected returns.