First, the risk of unknown price subscription and redemption of open-end funds
The price unknown risk in the subscription and redemption of open-end funds refers to the fact that when investors purchase and redeem fund shares on the same day, the net asset value of the shares they refer to is the data of the last open day of the fund, but the change of the net asset value of the fund shares from the last trading day to the open day is unpredictable by investors, so they cannot know what price they will trade at the time of subscription and redemption. This kind of risk is the risk that the purchase and redemption price of open-end funds is unknown.
Second, the investment risk of open-end funds
The investment risk of open-end funds refers to stock investment risk and bond investment risk. Among them, the risk of stock investment mainly depends on the operating risk of listed companies, the risk of securities market and the risk of economic cycle fluctuation, while the risk of bond investment mainly refers to the risk that the expected annualized interest rate changes affect the expected annualized expected return of bond investment and the credit risk of bond investment. The investment risks of funds are usually different with different investment objectives. Generally speaking, equity funds have the highest risk and monetary funds have the lowest risk. According to their own risk tolerance, investors can choose the fund type suitable for their own financial situation and investment objectives, and invest in a combined way.
Third, the risk of force majeure
Force majeure risk refers to the risk brought to fund investors when force majeure such as war and natural disasters occurs.
Fourth, market risk.
Market risks mainly include policy risks, economic cycle risks, expected annualized interest rate risks, operating risks of listed companies, purchasing power risks and so on.
Policy risk refers to the risk brought by market price fluctuation due to changes in national macro policies (such as monetary policy, fiscal policy, industrial policy, regional development policy, etc.). ); Business cycle risk means that with the cyclical changes of economic operation, the profitability of various industries and listed companies also changes periodically, thus affecting the trend of individual stock secondary market and even the whole industry sector; Expected annualized interest rate risk refers to the fluctuation of expected annualized interest rate in the market, which will lead to the change of securities market price and expected annualized expected rate of return. The expected annualized interest rate directly affects the price of national debt and the expected annualized expected rate of return, and affects the financing cost and profit of enterprises. If the fund invests in treasury bonds and stocks, its expected annualized expected income level will be affected by the expected annualized interest rate change; The operational risk of listed companies means that the operational quality of listed companies is affected by many factors, such as management ability, financial situation, market prospect, industry competition and personnel quality. This will lead to changes in the profitability of enterprises. If the listed company invested by the fund is not well managed, its share price may fall, or the profit available for distribution may decrease, thus reducing the expected annualized expected return of the fund investment. Although the fund can disperse this unsystematic risk through investment diversification, it can't completely avoid it; Purchasing power risk means that the profit of the fund will be mainly distributed in the form of cash, which may lead to a decline in purchasing power due to the influence of inflation, thus reducing the actual expected annualized expected income of the fund.