There is a saying in the investment community: don't put your eggs in one basket, which means spreading risks. Do we know which ones? The following are the reasons why the fund operation will be risky listed in Xiaobian, for reference only, and I hope it will help everyone.
Why is the fund operation risky?
Market risk: the market risk of fund investment refers to the investment loss caused by the price fluctuation of the investment target. Market fluctuation is influenced by many factors, such as macroeconomic situation, industry changes and policy adjustments. The market risk cannot be completely controlled, which may lead to the reduction of investment principal or the failure to realize the expected return.
Performance risk: the performance risk of a fund refers to the risk that the performance of the fund operation does not match the expectations of investors. The performance of the fund is influenced by many factors such as the investment decision, investment strategy and market conditions of the fund manager, which may lead to the fund's profitability being less than expected.
Liquidity risk: Liquidity risk refers to the risk that investors may not be able to convert fund shares into cash in time or trade at a reasonable price. When the market liquidity is poor or the fund assets contain more assets that are not easy to convert, investors may face higher liquidity risk.
Credit risk: the bonds or other financial products invested by the fund have credit risk, that is, the debtor cannot pay the principal, interest or other funds on time. Credit risk may lead to the decline in the value of bonds or other financial products invested by the fund or the risk of default.
How is the fund's transaction profitable?
Capital gains: when the price of the underlying assets invested by the fund rises, investors get the difference of capital gains by selling the fund shares.
Dividend income: The stocks or bonds invested by the Fund may pay dividends, bonuses or interest income, which will be distributed by the fund operators to the fund share holders.
Dividend income: Some funds can regularly distribute the fund income to fund share holders through dividends, and investors can choose to accept cash dividends or reinvest the dividends to buy more fund shares.
Interest spread income: bond funds or regular open-end funds can obtain income by buying low-risk bonds and using the interest spread between bonds.
What are the risks of fund investment?
investment risk
Pursuing the maximization of investment benefit is the instinctive requirement of investors. However, in the market economy, any investment behavior has certain risks. Risk is positively related to the return on investment, and the return is high, so it is often necessary to bear greater risks. Investment risk is the possibility that investors' investment activities are inconsistent with their initial investment wishes, that is, the probability that people may cause investment losses. The existence of investment risk is mainly due to many unpredictable factors in investment activities, such as natural disasters, technical defects and social changes.
Any investment is bound to have risks, but the degree is different, even if it is deposits and buying government bonds.
Generally speaking, risks are divided into systematic risks and non-systematic risks. Systematic risk refers to the possibility that some factors will bring losses to all individual investments. It happens outside the subject and object of investment, and investors can't control and prevent it, such as large-scale natural disasters and market risks. Non-systematic risk refers to the possibility that some factors cause losses to a single investor. If an investment project fails due to poor design or construction, the demand for a product will be reduced or eliminated due to market changes. Generally speaking, systemic risks are difficult to avoid or eliminate effectively, and non-systematic risks can be reduced or even completely avoided through investors' own efforts.
Specifically, investment risk can be divided into market risk, enterprise risk and social risk.
Market risk refers to the possibility that all investors and investors will suffer losses due to the changes in the economic situation of the whole country and the international economic situation and accidental information changes. Here mainly includes:
(1) The influence of macro factors such as politics, economy and law.
(2) The influence of monetary policy. The central bank's monetary expansion policy will inevitably bring about an increase in money supply, employment and investment opportunities, thus increasing investment interests; At the same time, it may also cause inflation and affect purchasing power.
(3) Interest rate risk. Refers to the possibility that the change of market interest rate affects the market cost and price of the investment object, thus bringing losses to investors. In the securities market, when the market interest rate rises, it will inevitably increase the operating and financing costs of listed companies and reduce the securities price. For example, when the market interest rate is 4%, investors buy a bond with a yield of 4% at a price of 100 yuan. After a period of time, when they want to sell the bond, the market interest rate rises to 8%. At this time, the bonds bought at 100 yuan can only be sold at the price of 50 yuan, with a loss of 50 yuan; If you don't sell, the market yield will rise, the yield of holding bonds will be fixed at only 4% in advance, and investors will also suffer the opportunity cost loss of interest. Interest rate risk has different effects on investors who hold securities with different maturities. Generally speaking, long-term securities are more sensitive to interest rate changes than short-term securities.
What are the risks of fund investment?
Yes, investment funds are risky. First of all, there are operational risks in fund investment. We know that fund investment is mainly managed by experts, but it will also be adversely affected by the good personal service of fund managers and the overall research team. If the personnel of the fund company change frequently, misjudge or manipulate the material object technically, then these will bring risks and losses.
Secondly, there is moral hazard in fund investment. As we all know, the fund industry is a highly transparent industry in China's securities market. But that doesn't mean there won't be mistakes. After all, there are always loopholes in even the strictest regulatory measures. Some time ago, it was revealed that some fund scandals have caused investors' trust in funds to fall to the bottom several times. Worldwide, fund companies go bankrupt every year.
In addition, there are liquidity risks in investment funds. Sometimes, when we sell the fund, we may face the difficulty of realizing it and the difficulty of not realizing it at the right price. Because under normal circumstances, fund managers generally have to undertake the redemption obligation based on the net value of stolen funds, and investors do not have the liquidity risk in the usual sense. However, when the fund faces the extreme situation of huge redemption or ship suspension, then investors may face the risk of not being able to redeem the net value of all unit funds on the same day, and thus bear the risk of falling net assets due to delayed redemption.
Seeing this, will everyone still ask this question: Is there any risk in fund investment? I believe everyone is quite clear about this. Finally, investment funds still have the risk of unknown subscription and redemption prices. We can't predict the change of the net asset value of the fund unit from the previous trading day to the next trading day, and we can't know at what price it will be sold at the time of subscription or redemption. So there are certain risks.
What are the main investment risks of the fund?
1 liquidity risk
Any kind of investment tool has liquidity risk, that is, the difficulty that investors face when they need to sell and the risk that they cannot realize it at a suitable price. For example, under normal circumstances, investors of open-end funds do not have liquidity risk because they can't find a buyer at a suitable price. However, when the fund faces the extreme situation of huge redemption or suspension of redemption, fund investors may bear the risk of being unable to redeem or redeeming at a low price because of the decline in net value, which is the liquidity risk of open-end funds.
2 Fund investment risk
The degree of risk of securities investment funds varies with the investment direction and objectives they pursue. For example, some securities investment funds mainly invest in small stocks with strong growth and high risk; If some securities investment funds mainly invest in the stock or bond market with stable performance, the income is relatively stable and the risk is relatively small. When investing, investors should carefully read the prospectus of the fund, have a clear understanding of the nature of the securities investment fund, the investment of the fund and the goals pursued by the fund, and have a basic judgment on the portfolio risk of the fund.
3 institutional management risk
Because the establishment and operation of participating funds involve different institutions such as trustees, accounting firms and fund managers, there are risks in the management and operation of institutions.