As of February 6, 2004, there were as many as 58 open-end funds, ranging from equity-to-debt to full-debt, from active to exponential, from growth to income. We believe that before choosing an open-end fund, investors must first judge their ability to withstand risks. Some investors are risk-averse, they should consider low-risk capital preservation funds and bond funds; some investors have higher risk tolerance, they can give priority to higher-risk equity funds.

At present, open-end funds in the domestic fund market can be classified into high-to-low risk order: partial stock funds (existing index funds are one of them), balanced funds, partial debt funds, bonds Type funds and capital preservation funds. After clarifying the broad categories of funds, you can begin to select the most appropriate funds among the various funds.

Investing in open-end funds is to obtain corresponding investment returns at a certain level of risk. Generally, we believe that the performance of the fund has a certain continuity. Therefore, to judge the investment prospects of an open-end fund, we can focus on its past performance. The simplest and most effective indicator is performance growth and risk level, and most of the other indicators are derived from these two indicators.

First, the performance growth. The growth in performance of open-end funds is expressed in terms of unit net growth. In order to ensure that a certain number of funds participate in the comparison, we choose the performance from January 6, 2003 to the present. During this period, there were obvious three stages of “rising---down---rising” in the broader market. Therefore, the performance growth of this stage can reflect the operation ability of the fund to some extent. In addition, we also compared the performance of the open-end fund from November 19, 2003 to the present, because November 19 last year was the starting point of the current round of the market. From the perspective of performance continuity, funds that perform well at this stage are expected to continue to perform well in the subsequent stages of this round of market.

Second, the level of risk. We use the variance of the rate of return to measure the risk of open-end funds, because the size of the variance reflects the stability of the rate of return. In order to correspond to the statistical period of unit net value growth, we also compared the variance of the yield of open-end funds from January 6, 2003 to November 19, 2003.

It should be noted that the historical performance of open-end funds cannot be completely equated with their future performance. Investors can choose two or three funds at the same time to invest in open-end funds to prevent individual funds from affecting investor returns. is too big. In addition, investment in open-end funds should be treated with a long-term perspective, and try to avoid frequent entry and exit.