How to treat the ranking of funds?

Fund rankings are also constantly changing. No fund can maintain its leading position forever, and it may not change much in the short term. In the long run, some of the top funds in the previous period will start to fall behind. There is a simple reason. When the wind direction of the market changes, the target of the fund investment with a lower ranking 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 you only want to choose funds with high returns, once the market falls, the funds with high rankings will also fall the fastest, and the former champion fund will immediately become a chicken head. Fund ranking only represents the past, not the future. When we choose a fund, we need to make a comprehensive judgment:

A fund that outperforms the performance benchmark is a good fund. 2. Different types of funds have different returns. 3. Look at the performance of the fund from a specific market background. 4. You can't just look at the short term, but the sustainable return is the key. Compared with the performance benchmark: the 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 CSI 300. If the fund's income can outperform the Shanghai and Shenzhen 300 most of the time, then this standard has been reached. Quartile rule: this method arranges similar funds in increasing order, and then divides them into four equal parts, each of which contains about a quarter or 25% of the funds. The relative ranking of funds is divided into excellent, good, average and poor according to their positions. 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.