Dongfanghong Leading Select Flexible Allocation Hybrid Securities Investment Fund is a hybrid fund, which belongs to a variety of securities investment funds with higher expected risks and higher expected returns. Its expected risk and expected return are higher than those of bond funds and money market funds, but lower than those of equity funds.

fund

Investing in private placement bond, a small and medium-sized enterprise, because private placement bond, a small and medium-sized enterprise, is issued by non-public offering, even if the market liquidity is good, the liquidity of individual bonds may be poor, which makes it difficult for funds to buy or sell the corresponding amount as planned, or the trading behavior has a great impact on the price, which increases the cost of opening or realizing bonds. Moreover, the credit rating of SME private debt is lower than that of ordinary bonds, and there is a risk that the issuer cannot repay the principal and interest in full and on time. In addition, when the issuer's credit rating is lowered, the bonds invested by the Fund may face the risk of falling prices.