Due to the use of portfolio investment in fund operation, external factors have a relatively small impact on it. Therefore, such risks are usually smaller than other investments. The company risk of the fund, that is, the internal risk, is caused by the management capability and reliability of the fund manager company. Funds are classified into low-risk funds, medium-risk funds, and high-risk funds according to the degree of risk.
Low-risk funds are funds that mainly invest in low-risk financial products, such as national bond funds and money market funds. Medium-risk funds are funds that mainly invest in medium-risk financial products, such as blue-chip stock funds and international bond funds. High-risk funds are funds that mainly invest in high-risk financial products, such as warrant funds, leverage funds, and futures funds.
1. Unknown price risk of the purchase and redemption of open-end funds
The unknown price risk of the purchase and redemption of open-end funds refers to the fact that when investors purchase or redeem fund units on the same day, the unit asset net value they refer to is the data of the last fund open day. Investors cannot predict the changes in the unit asset net value from the last trading day to the open day. Therefore, investors cannot know what price they will trade at when buying or redeeming, and this risk is the risk that the purchase and redemption prices of open-end funds are unknown.
2. Investment risk of open-end funds
The investment risk of open-end funds refers to the risks of stock investment and bond investment. Stock investment risk mainly depends on the operating risk of listed companies, securities market risk, and economic cycle fluctuation risk. Bond investment risk mainly refers to the risk that interest rate changes affect bond investment income and the credit risk of bond investment. The investment objectives of funds are different, and their investment risks usually differ. Income-type funds have the lowest investment risks, while growth-type funds have the highest risks and balanced funds are in the middle. Investors can choose fund varieties that suit their financial conditions and investment goals according to their risk tolerance.
3. Force Majeure risk
Force majeure risk refers to the risk that war, natural disasters, and other force majeure events may bring to fund investors.
4. Market risk
Market risk mainly includes policy risk, economic cycle risk, interest rate risk, listed company operating risk, purchasing power risk, etc.
5. Policy risk
Policy risk refers to the risk of market price fluctuations caused by changes in national macro policies (such as monetary policy, fiscal policy, industry policy, regional development policy, etc.).
6. Economic cycle risk
Economic cycle risk refers to the periodic changes in the profitability level of various industries and listed companies with the changes in economic operation, thereby affecting the trends of individual stocks and even the entire industry sectors in the secondary market.
7. Interest rate risk
Interest rate risk refers to the fact that market interest rate fluctuations can cause changes in securities market prices and yields. Interest rates directly affect the prices and yields of national bonds, as well as the financing costs and profits of companies. Funds invest in national bonds and stocks, and their yield levels are affected by interest rate changes.
8. Listed company operating risk
Listed company operating risk refers to the many factors that affect the operating performance of listed companies, such as management capability, financial condition, market prospects, industry competition, personnel quality, etc. These factors may cause changes in the profitability of enterprises. If the listed company invested in by the fund has poor operating performance, its stock price may fall, or the profits available for distribution may be reduced, resulting in a decrease in the fund investment income. Although funds can diversify this non-systematic risk by investment diversification, it cannot be completely avoided.
9. Purchasing power risk
Purchasing power risk refers to the fact that the profit of the fund will mainly be distributed in cash form, and cash may be affected by inflation, which may lead to a decrease in purchasing power and a decrease in the actual yield of the fund.
Advantages of funds: 1. Collective investment
Funds are an investment method that cleverly collects scattered funds and invests them in various financial instruments through professional institutions to seek asset appreciation.
2. Risk diversification
Funds can achieve asset portfolio diversification and diversify investments in various securities. Through diversified operations, on the one hand, investors face smaller investment risks due to the advantages of large funds and many investors, and on the other hand, they use the complementarity between different investment objects to achieve the goal of diversifying investment risks.
Additional information: Expert Management The fund implements a professional management system, and these professional managers have undergone special training and have rich experience in securities investment and other project investment. According to different standards, securities investment funds can be divided into different types: 1. According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (depending on the situation), but are purchased and redeemed through banks, securities companies, and fund companies. The fund size is not fixed; closed-end funds have a fixed duration and are generally traded on the securities exchange. Investors buy and sell fund units through the secondary market. 2. According to the different organizational forms, it can be divided into company-type funds and contract-type funds. Funds are established by issuing fund shares and establishing investment fund companies. They are usually called company-type funds. They are established through fund contracts by three parties: fund managers, fund custodians, and investors, and are usually called contract-type funds. All securities investment funds in China are contract-type funds. 3. According to the different investment risks and returns, it can be divided into growth-type, income-type, and balance-type funds. 4. According to the different investment objects, it can be divided into stock funds, bond funds, money market funds, futures funds, etc.
