First market risk: Market risk refers to the risk that investors suffer losses due to market price fluctuations. Market price is influenced by many factors, such as economic situation, policy changes, industry development, company performance, etc. Changes in market prices will directly affect the fund's net worth and rate of return.
The second type of investment risk: investment risk refers to the risk that the loss or income is lower than expected due to improper investment decision or operational error of the fund manager. Although fund managers have professional knowledge and experience, they may make mistakes or be influenced by emotions.
The third kind of force majeure risk: Force majeure risk refers to the risk that losses or gains are lower than expected due to unpredictable and uncontrollable events such as natural disasters, wars and terrorism. This kind of incident will cause serious impact and confusion to the market.
The third kind of policy risk: policy risk refers to the risk of price fluctuation in the securities market due to the introduction or revision of relevant policies and regulations by the state or local government. For example, tax policy, monetary policy and regulatory policy may have an impact on the securities market.
Fourth economic cycle risk: economic cycle risk refers to the risk of price fluctuation in the securities market due to different stages of economic operation. For example, during the economic recession, consumer demand fell, corporate profits fell, and stock prices fell.
Interest rate risk: Interest rate risk refers to the risk that the price of bonds or other fixed-income products fluctuates due to interest rate changes. Generally speaking, bond prices fall when interest rates rise and rise when interest rates fall.