What should we pay attention to in choosing funds

The bullish stock market makes more and more people begin to pay attention to and participate in the stock market and funds. Now many new funds are issuing, and many old funds are doing well. How to choose? In fact, when choosing funds, there are several basic elements that investors should focus on to understand and grasp, so that they can have a clear idea when choosing funds.

(1) Don't generalize: some fund companies will deliberately select one or two periods when the fund performs best and publicize the fund's excellent operation performance. Investors should collect more long-term net value change information of these funds as evidence to avoid misleading.

(2) Don't ignore the difference in starting point: the same type of fund, due to the time of establishment, formal entry operation time is different, the net value is different.

(3) Don't forget the "dividend ex dividend" factor: like stocks, the "dividend" must be deducted from the net value on the base date of dividend (income distribution). Therefore, when calculating the growth rate of net fund value, we must restore the ex dividend factor.

(4) To avoid "cross class" comparison: the same type of funds can be put together to compare the performance. The main investment targets of stock and bond funds are different, and the corresponding risks are different. It is unfair to judge the performance mixed together.