I. Market Risk
Buying funds has market risks. Usually, every time the market crashes, investors will suffer huge losses. Therefore, investors need to have certain market risk tolerance when purchasing funds.
Second, target risk.
If the income obtained by investors from investing in the fund fails to reach the expected level, then the fund is prone to target risk. Therefore, investors need to choose aggressive or conservative investment strategies according to their actual situation when investing in funds.
Three. liquidity risk
The liquidity risk of funds usually occurs in some immature capital markets. Once the fund faces huge redemption, the fund manager will be forced to sell the stocks in the portfolio, leading to a unilateral decline in the market.
4. Unknown purchase and redemption price risk
Investors don't know at what price the transaction will be completed when they purchase or redeem the fund, so the unknown purchase and redemption price will bring certain risks to investors.
To sum up, fund investment is also risky, so be cautious when entering the market!
Funds have broad and narrow definitions. Broadly speaking, it refers to a certain amount of funds set up for a certain purpose, such as trust and investment funds, provident funds, retirement funds, etc. In a narrow sense, it refers to funds with specific purposes and uses. Usually, funds mainly refer to securities investment funds. The income of securities investment funds comes from the future, and the performance of the income is inseparable from the performance of the investment target market, which has certain risks.
According to different standards, securities investment funds can be divided into different types:
First, according to whether fund units can be increased or redeemed, they are divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.
Two, according to the different organizational forms, can be divided into enterprise funds and contract funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.
Three, according to the different investment risks and benefits, can be divided into growth, income and balanced funds.
Four, according to the different investment objects, can be divided into stock funds, bond funds, money market funds, futures funds, etc.