1, unsystematic risk. Equity funds can reduce the unsystematic risk of individual stock investment through bank diversification, and can set the highest proportion of individual stocks to control individual stock risk and realize risk diversification.
2. Systemic risk. Systematic risk is often the source of investment return, and it is the risk that banks need to actively expose in their portfolios. There is industry investment risk in a single industry investment fund, but there is no industry risk in funds that invest in the whole market.