What are the risks of fund investment?
1, market fluctuation risk. As an indirect investment method, the fund participates in the stock market, bond market and money market, and the rise and fall of the market will be directly reflected in the net value and income of the fund. For example, if the market interest rate rises, the bond price may fall, and the bond fund will be affected. If the default risk of the bond market increases, the loss risk of the bond fund will also increase.
2. Liquidity risk. When the fund is faced with huge redemption and the redemption is suspended, investors may not be able to redeem the fund in time to realize it. This situation generally occurs when the market panics or investors lack confidence, and investors sell their fund shares one after another, resulting in the fund company being unable to realize its assets in time to meet the redemption demand.
How to select high-quality funds?
1, the scale, strength, reputation and management level of a fund company will affect the quality of its funds. Generally speaking, large well-known fund companies are more trustworthy, because they have more resources and perfect management system, and can provide more professional and stable fund management services.
2. The background, ability and style of the fund manager will affect the performance of the fund he manages. Generally speaking, fund managers with rich investment experience, long working hours and stable performance are more trustworthy and can better cope with various market environments and risk challenges.
3. The performance of the fund reflects the investment effect and value of the fund. Generally speaking, the better the performance, the better the fund. However, investors should not only look at the recent performance or a single performance indicator, but also comprehensively examine the performance of the fund in various periods.