With the development of the fund market, there are more and more kinds of funds in the market. There are about 7000 public funds in the market. In the face of a large number of funds, people are dazzled. The fund market is also a mixture of good and bad. The performance of different funds is very different. If you select the performance funds with stable long-term performance, you will get more than half of the investment success. Here are some simple ways to help You pick the right fund. Mainly from the fund itself and the fund manager two dimensions to consider.
1. Fund selection based on target holding time
When everyone starts to invest, they will have their own preferred investment targets. The difference in risk tolerance will also lead to differences in investment targets. For example, investors prefer to invest in stock funds and hold them for about two years. This is a short-term trading. Then investors can rank the top 100 according to the performance trend of the fund in the past two years or more Around the fund selection, and then refer to other indicators for further selection.
2. Reference fund rating
For the overall evaluation of the fund by the third-party fund platform, the evaluation standards of different platforms are different. The same fund may have certain differences in different platforms, but the difference is not too big. It is basically based on the fund's past performance, income indicators, risk indicators and other dimensions of comprehensive evaluation. Among them, performance is the most important part of rating ranking. Generally speaking, if the previous performance is outstanding, the ranking will be higher and the rating will be higher. Fund rating is usually conducted once a month. The results of last month are released this month. The rating is generally 1 to 5 stars, including 1-year, 2-year, 3-year and 5-year periods. Fund rating is ranked among similar funds. For example, index funds can only be compared with similar index funds.
3. Select according to set goals
When selecting funds, we can preset a selection target. For example, investors want to invest in stock funds. For example, if the investors want to invest in stock funds, the asset size is more than 10 billion and the annual yield is more than 12%. After setting, the qualified funds will be screened out. Most fund platforms have such screening function, such as daily fund.
For active funds, the performance of funds largely depends on the management of fund managers, so it is very important to select good fund managers.
1. Investment experience
The longer the fund manager's years of management, the richer the investment experience, the more able to cope with various market conditions. A round of A-share bull bear cycle is about five years, so the fund managers with more than five years of fund management are selected.
2. Historical achievements
According to the average annualized rate of return obtained by the fund manager and the average annualized rate of return exceeding the benchmark, the comprehensive profitability of the fund manager is evaluated. At the same time, considering the fund manager's comprehensive rate of return and whether he outperforms the market most of the time, the higher the yield, the better.
3. Job hopping frequency
The frequency of fund managers' job hopping is measured by the average length of service. Fund managers may change jobs for better development and treatment, or they may be dismissed because of poor investment level. In any case, the average length of service should not be too low.
4. Basic information of fund managers and fund companies
Look at the brief introduction of each fund manager to understand the working experience and professional degree of the fund manager. There is also the strength of fund companies, investment research strength and stability of the team is conducive to the fund manager's investment operation.
5. Investment style
To see whether the investment philosophy of the fund manager is consistent with his own investment style. We can judge the investment style of fund managers from the aspects of industry allocation, heavy positions, positions, opinions and so on.