Risks of stock funds:
1. Equity funds face the risk of principal loss because they are not capital preservation funds;
2. As far as the stock market is concerned, some stock prices fluctuate abnormally, which may reach about 50%, which means that the decline of stock funds may also reach 50%;
3. The biggest risk is that the stock market has plummeted or the stock has withdrawn from the market. However, this is basically impossible. On the one hand, it is held by professional institutions, and its security is relatively guaranteed. On the other hand, it should be no problem for multiple stocks to hedge their risks.
Benefits of stock funds:
Compared with other funds, equity funds have diversified investment targets and investment purposes.
② Compared with investors who directly invest in the stock market, equity funds have the characteristics of risk diversification and low cost. For ordinary investors, individual capital is limited after all, and it is difficult to reduce investment risks by diversifying investment types. However, if you invest in stock funds, investors can not only share the benefits of all kinds of stocks, but also spread the risks among all kinds of stocks by investing in stock funds, which greatly reduces the investment risks. In addition, investors who invest in stock funds can also enjoy the relative advantages of large-scale investment in funds, reduce investment costs, improve investment returns, and obtain benefits of scale.
③ From the perspective of asset liquidity, equity funds have the characteristics of strong liquidity and high liquidity. Equity funds invest in stocks with excellent liquidity, with high asset quality and easy realization.
Stock fund
(4) For investors, equity funds operate stably and have considerable returns. Generally speaking, the risk of stock funds is lower than that of stock investment. So the income is relatively stable. Not only that, after the closed-end stock fund is listed, investors can also obtain the bid-ask spread by trading on the exchange. After maturity, investors have the right to distribute the remaining assets.
⑤ Equity funds also have the function and characteristics of financing in the international market. As far as the stock market is concerned, the degree of internationalization of its capital is lower than that of foreign exchange market and bond market. Generally speaking, the stocks of all countries are basically traded in their own markets, and stock investors can only invest in stocks listed in their own countries or stocks listed in a few foreign companies. In foreign countries, stock funds have broken through this restriction, and investors can invest in the stock markets of other countries or regions by purchasing stock funds, which has played a positive role in promoting the internationalization of the securities market. Judging from the current situation of overseas stock markets, a large part of the investment objects of equity funds are foreign company stocks.