This article summarizes the four most basic steps in choosing a fund. If the fund you are looking at meets all of the following conditions, then congratulations, it has a high probability of being a good fund. However, if even one of the conditions is not met, you need to consider the following, because it may not be a good fund for long-term holding.
Choosing a good fund management company is the beginning of your investment success.
The fund's past performance can reflect its profitability to a certain extent. In the case of similar returns, you can choose those funds that are less volatile. Look at the size of the fund. The first thing you need to do is to understand the size of this fund, the fund is too large or too small is likely to affect its performance, so the fund to more than 100 million sizes, medium best, the more appropriate range is between 3 billion - 4 billion. Knowing a fund's performance like the back of your hand. The fund's performance means everything, so when choosing a fund, of course, the higher the performance the better. In this article, we suggest that you can refer to the performance ranking of the fund over a long period of 3 years, 5 years, or even 10 years respectively, which is more accurate and informative. When buying a fund, make sure to choose a professional fund manager. How can I quickly identify whether a fund manager is professional or not? You can look at his time in the industry, a manager with more than 5 years of experience will be relatively more mature. A fund manager's historical performance is also important, the higher his performance ranking, the greater the investment return.
However, different funds and fund managers may have very different investment styles. Different clients suit different fund manager styles, and different investors have to choose different funds to invest in according to their risk appetite and tolerance. The fund is given to the fund manager to operate, so there is a greater correlation between the fund's performance and the fund manager. Referring to his investment style, the article does not recommend that you choose a fund manager with a variable investment style, as that is unstable. The fund manager is the soul of the actively managed fund, and the fund manager's investment style represents the fund's style. To put it simply, investing in an actively managed fund is the same as investing in its fund manager. A strong and stable team of investment and research is good for the fund manager's investment operation. Last but not least, you also need to look at the time of the establishment of the fund, the best fund was established more than three years. Because generally speaking, the longer a fund is established, the more information available, the easier it is to make reasonable judgments and choices, and the easier it is to choose a profitable fund.
