Cainiao hichina (III)-select a fund

How can I choose a specific fund for investment? Basically, this is an issue of experience and preference. We recommend that you invest 1000 for every fund you are interested in so that you can have a deep understanding of them, and the cost will not be too high. However, most people usually do not have that much money, and every one is invested. This is neither practical nor costly, so there is still a preliminary screening process. How to choose?
There are several good principles:
1. Check whether the Fund's previous net worth changes are large, that is, the standard deviation of the Fund.
This mainly checks whether a fund is vulnerable to repeated fluctuations due to market changes. A fund that is prone to repeated fluctuations is not a good fund, because it shows that it simply follows market changes without grasping the market trend. Its Risk Aversion capability is usually poor, because it is likely to follow as long as the market falls.
2. Check whether the Fund's previous net worth change trend is good, that is, its return rate.
This is just a little simple. It's basically clear how their annual return rate is. It is best to look at the three-year, three-month period. We can see that this fund is profitable by chance, or it is always doing well because of proper operations. The accidental factors are basically random, and we cannot grasp them. Therefore, the overall performance is more realistic.
3. Comprehensive considerations 1 and 2. There is something called the Sharp Index, which can basically be considered to be the result of dividing the return rate by the standard deviation. The approximate meaning of this value is what the possible benefits are under the risk of a unit. For example, if we see a fund, its rate of return is a 45-degree upward straight line, and there is no fluctuation at all, then investing in this Fund will make no compensation. If we see a fund, it is also a 45-degree upward line, but there are great fluctuations, then whether to invest in this fund to make money in the short term depends on your investment time. Whether or not to make money in the future is not as reassuring as the previous fund. The higher the Sharp Index, the better.
4. Pay attention to the performance of each fund when the market falls. This is the most important thing. Because when the market rises, we can basically capture the opportunity, and the difference will not be too big. If the opportunity for continuous growth is not captured, the Fund must be very conservative or difficult to operate. Such a fund can be seen at a Glance. It should be a fund that has been thrown into the waste bin. Everyone can think of this problem. However, when the market falls, it is the time to look at which fund is better. This is probably not a problem that cainiao can think. In fact, when the market rises, it will also fall along with the market at any time, which basically means taking a roller coaster, and nothing is done at last. Different from making investments between investment funds, investment funds will have a long delay from sending investment operation instructions to completing the operation. You may make a profit when sending the command. When the command is completed, it becomes a compensation. In addition, the Fund usually uses "days" as the unit of operation time. It may be earned in the morning of a few days, but it may be compensated in the afternoon. The result is still lost. If the fund manager performs well and delivers the goods in the morning, the market decline in the afternoon will not happen to you, or even make a small profit. In other words, the operation level of the fund manager is more important than your operation level. It is impossible for investment funds to focus on market changes every minute and every second. Therefore, it is more worry-free to choose a drop-resistant Foundation. Of course, some people will choose to follow the funds in the market and decide when to enter and exit, but this requires you to have a better operation level than the average fund manager.

Here, some people may begin to notice another problem: dividends. For example, when selecting a fund, do you need to pay attention to its dividend situation?
In fact, dividend is a trick. When comparing which fund is better, there is no need to care about it. Here are two examples:
In June January 1, 10000 yuan a fund was bought for one dollar each, that is, 10000 yuan.
In February 1, the Fund received a dividend of 0.2 yuan for every ten copies, so you got 200 yuan. The total market value of the Fund has not changed before the dividend, so each share is still 1 RMB. However, after the dividend ends, the total market value of the Fund is reduced by two percentage points. As a result, the market value of each fund becomes 0.98 yuan. Therefore, the total value of your fund becomes 9800 yuan. Add the dividend of 200 yuan, or 10000 yuan.

In March 1, you bought another 10000 yuan B fund, that is, 10000 yuan, at the price of one dollar each.
In April 1, the total market value of the Fund increased by 2%, so the value of each fund became 1.02 yuan. At this time, if you want to make a profit, you will redeem it all. If you do not consider the redemption rate, You have redeemed 10200 yuan. In April 2, the Fund paid dividends, but it also did not score 10 yuan and 0.2 yuan. You regret it. If you didn't redeem it at the beginning, it would be nice. This is actually not the case. We will know it when we calculate it. Assuming that the market value of the Fund increased by about April 2 in 1%, the value of each fund became 1.03 yuan. If you redeem it in April 2, the Fund still pays you a dividend of 200 yuan (this has nothing to do with the market value, but only with the number of shares held ). After the dividend ends, the total market value of the Fund decreases, so the price of each share will drop to 1.01 yuan. At this time, the total value of your fund is 10100, plus 200 of the dividend, a total of 10300 yuan. Compared with April 1, the Fund received an additional 100 yuan, but it had nothing to do with dividends, only because of the increase in the net worth of funds in April 2.

Therefore, when we compare different funds, we only need to pay attention to the "cumulative net worth" change of a fund. In this case, it seems that dividends are useless. If you choose "cash dividend" when paying dividends, you do not need to pay for the redemption fee, but do not forget to pay the subscription fee for your next investment. If you choose to "reinvest in dividends", it is actually the same as you did not choose. That is to say, it gives you a way to redeem some of the funds without the need to pay the redemption fee. But in general, this does not have much value. Because the dividend does not happen several times a year, each time it is divided into several cents. As in the previous example, if you buy a fund of 10 thousand yuan, the amount of dividends you pay may be 200 yuan at a time. The redemption fee for these two hundred yuan may be at most one yuan. If you spend half a day, you will save 1 RMB. So there is a difference, but it is not important. A fund that has been red for 12 times a year is compared with a fund that never pays dividends. If their cumulative net worth changes are the same, you can get at most 12 yuan for every 10 thousand yuan.
However, dividend has a function, which may not be noticed by cainiao. Ordinary fund companies, in order to create a high rate of return, will deliberately raise the net worth of each fund. For example, a fund with a unit net worth of 1.7 and a fund with a unit net worth of 1.1 can easily have the illusion that the previous one must be better than the latter. What I am talking about in this way is not fraud, but through such measures as not paying dividends. Some people may think about it here: Is it better to have a higher balance score, because it can have a higher net worth for so many times? I reiterate that this is not the case. You only need to check the cumulative net worth. Some fund organizations do not pay dividends when their net worth reaches two RMB. If you buy one RMB, it is also doubled. Some RMB is allocated once every 1.1 yuan, and about 0.02 yuan is allocated. You only earned 30% yuan in profits for ten such funds. So what can we see from fund dividends? In order to maintain a good image, the Fund must be well prepared. For example, there is a fund with the first 1.22 million dividends, and the dividend is 0.1, so the net worth of each fund is 1.12. If the market drops by 20% in the next few days, and the Fund is not ready to fully follow the market, the net worth may change to 0.93 or lower. Investors will notice the change from 1 to 0, which is very unfavorable to the fund, because investors will not dare to invest money in the fund. In other words, if a fund is paying dividends, he has to do a lot of preparation work, get the money from the investment market before the dividend, and transfer the money to more defensive products, after paying dividends, You can actively perform the operation to ensure that the above situation will not occur or be mitigated. Therefore, products that have just ended with dividends will have a stronger resistance.