Hybrid funds are named after bonds and stocks, which are divided into partial debt funds and partial stock funds, and bonds or stocks account for a large proportion. The risks are different. The risk of partial debt is medium, and the risk of partial stock is medium and high. In 2020, the average yield of hybrid partial stock funds will reach 47.47%, which is the highest among all kinds of funds. The order of risks from small to large is: R 1 (cautious type), R2 (steady type), R3 (balanced type), R4 (offensive type) and R5 (aggressive type). Investors think that low-risk investment is actually R 1 and R2. Generally speaking, the low risk in bank wealth management products refers to two types: R 1 level risk is very low, which can generally guarantee income; R2 is a relatively safe floating wealth management product with low risk.
The principal and income of R3 cannot be guaranteed to be above the classification, and the purchase of such products fluctuates greatly. For example, it says that the expected income is 5.8%, and it may be only 4.8% at the time of settlement. The product description of wealth management products will clearly indicate the risk level of the products. Medium and low risk generally refers to some bonds and trust wealth management products. Among the wealth management products sold by banks, these two types are divided into PR 1, PR2 and PR3. R 1-R2 corresponds to some bond wealth management products, R3 generally refers to some trust wealth management products, and R4-R5 mainly refers to some linked products and foreign currency wealth management. Other financial products also have risks, such as money funds, stocks and trusts. But how to get higher financial returns without increasing risks? So sometimes it is worthwhile to take greater risks, but the risks need to be within their own scope and cannot exceed their risk tolerance.
For example, banks have five levels of risk in wealth management products, while Public Offering of Fund may only have four levels. This is also a description of medium and low risks, but Public Offering of Fund can be said to be a bond fund, but bond funds include pure bond funds and primary and secondary bond funds; The low-risk products of banks may still focus on fixed income, excluding investment equity products. Because Public Offering of Fund has a high risk preference for customer groups, the risk preference of bank customer groups is low. This is also the reason why I don't recommend using words to judge the risk level of products, because different financial institutions will classify products according to the risk preferences of customer groups, that is, the standards are different. Using words to judge risks may cause investors to suffer unexpected losses.