Master these skills to choose a fund without confusion.
How to choose an anti-falling fund?
Last class talked about the earning power of the fund, but what if the selected fund goes up more and falls much more? Although generally speaking, financial products with high potential returns may also bear greater risks, the pullback and volatility are also related to the risk-resistant ability of the fund itself.
Let's first take a look at one of the anti-risk indicators: beta.
Fortune Elephant Wealth provides a number of indicators of anti-risk ability for your reference:
View path: click tab > Select a fund in Futuo Niuniu, and go to the details page > performance > Fund indicators > View details
Maximum pullback:For the largest decline in a certain period of time in the past, the smaller the absolute value of the withdrawal, the stronger the ability to resist risk.
Maximum number of days for withdrawal and repair:The number of days from the day of the maximum withdrawal to the highest point before the withdrawal, the smaller the value, the faster the repair. This index does not participate in the scoring of bond funds.
Annualized standard deviation:As a measure of the degree of fluctuation within a year, the greater the standard deviation, the more violent the fluctuation; in the case of the same rate of return, the fund with larger standard deviation bears higher risk.
β: it is a relative index to measure the volatility of fund returns relative to the benchmark returns of performance evaluation. The higher the beta, the greater the volatility of the fund relative to the performance evaluation benchmark. This index does not participate in the scoring of bond funds.
R squared: reflects the impact of changes in performance benchmarks on fund performance, the lower the R square, the less changes in fund performance caused by changes in performance benchmarks. If the fund is compared with an unrelated performance benchmark, the beta coefficient and the alpha coefficient calculated by it do not make any sense. The R square reflects the impact of changes in performance benchmarks on the performance of the fund. This index does not participate in the scoring of bond funds.
