What do you think of the ranking of funds?

The fund rankings are also constantly changing. No fund can keep the leading position forever, and it may not change much in the short term. In the long run, some funds ranked at the top of the previous period will start to fall behind. The reason is very simple. When the wind changes in the market, the target of the fund investment ranked lower may be recognized by investors for various reasons, so it is natural for the ranking to rise. If you want to find excellent funds according to their rankings, you need to conduct scientific and reasonable research. First of all, it should be clear that the fund ranking is only the income ranking of the fund in the past period of time. If we only want to choose a fund with high returns, once the market falls, the decline rate of the fund with high ranking is also the fiercest, and the former champion fund will immediately become a chicken head. The ranking of funds only represents the past, not the future. When selecting funds, we need to make a comprehensive judgment:

The fund that outperforms the performance benchmark is a good fund; 2. Different types of funds have different returns; 3. Look at the performance of funds in a specific market background; 4. Look not only at the short term, but also at the sustainable returns. Compared with the performance benchmark: a fund that can outperform the performance benchmark for a long time shows that the management ability of the fund is still relatively strong. For example, the benchmark of a fund is the yield of the Shanghai and Shenzhen 3. If the income of the fund can outperform the Shanghai and Shenzhen 3 most of the time, then this standard will be met. Quartile rule: this method arranges similar funds in order of increase, and then divides them into four equal parts, each part contains about a quarter or 25% of the funds. The relative ranking of funds is divided into excellent, good, average and poor according to the position. When looking at the ranking of funds, we must pay attention to the comparison between similar funds, and the comparability between different types is not strong.