What are the characteristics of a good fund?

As the saying goes, buy stocks to buy stocks, buy funds to buy funds . Presumably everyone knows this. How do you screen for good funds? Whether you buy stocks or funds, you have a lot to choose from. So how should we select good funds?

What is a good fund?

Good funds are those that can provide investors with stable returns. For example, you buy a fund that gives you a steady stream of income without negative news. This is a good fund that everyone likes. Bottom line: A high-yield, low-risk fund is a good fund.

Characteristics of a good fund:

1. Funds with good performance have long-term upward momentum. It depends on the fund’s short-, medium- and long-term performance rankings, whether it outperforms performance benchmarks, and whether it can outperform the market. A fund is relatively reliable if its performance in all periods, whether in March, 1, 3, or 5 years, is in the first four quarters.
2. For funds with low risk, stable trend and continuous rise, the risk is relatively small, and those funds with large fluctuations can easily turn investors into leeks.
3. A stable investment style means that the purpose of the fund’s investment does not change frequently, but is held for a long time. If you pursue short-term market hot spots, the style is unstable, and in the end you can’t understand it, it is difficult for this type of fund to become a good fund.
4. Strong liquidity and low cost. Open-ended funds will be publicly traded on a daily basis. Investors can buy and sell at any time according to their actual needs. A good fund will not fail to sell.
5. Fund managers have strong management skills. Whether investors can make money requires the efforts of fund managers. Popular fund managers with strong management skills and high popularity are more worthy of consideration.

After reading the above introduction, I believe that everyone has a good understanding of the characteristics of a good fund. Investors should comprehensively consider their own risk tolerance, holding time, market environment and other factors when selecting fund varieties.