How to choose the fund with high performance and price ratio?

To buy a fund, you should consider both income and anti-risk, so how to make a quick and comprehensive judgment?

First, let's learn about one of the indicators of the fund's investment performance-price ratio: the Sharp ratio.

Fortune Elephant Wealth provides a number of investment performance-to-price indicators for your reference:

View path: click tab > Financial Management > Select a fund in Futuo Niuniu, and go to the details page > performance > Fund indicators > View details.

• Sharp ratio:Reflect the excess rate of return for the unit risk of the fund. In general, the higher the ratio, the higher the excess rate of return for the unit risk of the fund.

• Traineau ratio:The greater the risk premium per unit of risk, the better.

• Karma ratio:To measure the relationship between the return and the maximum pullback, the formula is that the interval annualized rate of return / interval maximum pullback, the larger the absolute value, the better. In extreme cases, if you withdraw to 0, the Karma ratio cannot be calculated.

• Information ratio:Reflecting the excess return obtained by the unit tracking error, the larger the value, the higher the ratio of performance to price of the investment.

• Sotino ratio:Reflect the excess rate of return that the fund can get when it bears the downside risk of the same unit, the larger the better.