Any investment behavior will be risky. The characteristic of investment funds is that they are managed by professionals and make portfolio investments to spread risks. But this is not without risks. Generally speaking, small investments have to put eggs in one basket because of limited funds; And when a basket is knocked over, the eggs in it will be broken. Investment funds put eggs in many baskets; After all, all baskets are much less likely to be knocked over than a single basket.

Generally speaking, investment funds encounter the following risks:

Market risk: the phenomenon that the market and prosperity of the investment object fluctuate due to the political, economic, social or market confidence problems of the investment country or region is called market risk.

Purchasing power risk: when inflation exceeds expectations, it will reduce the real rate of return on investment and make investors suffer intangible losses.

Interest rate risk: when the interest rate changes, it will also reduce the value of the fund investment target, thereby reducing the value of the fund.

Credit risk: if the fund invests in high risk.

Exchange risk: funds denominated in foreign currencies are generally called offshore funds, and they invest in foreign currencies, so they are easily affected by exchange rates, leading to changes in investment returns. Therefore, in addition to the original capital spread, investors of overseas funds must bear more exchange risks than domestic funds.

Different types of funds have different degrees of risk. For example, securities derivative funds and single-market equity funds are relatively risky, but the income from investing in such funds is also relatively large. International bond funds and money funds have relatively low risks and small returns. Once investors subscribe for investment funds, their investment risks can only be borne by the investors themselves. Fund management companies can only manage assets for investors, and do not bear any investment risks caused by investing according to the terms of fund contracts or investment agreements.

Remind investors that the past performance of the Fund does not represent the future performance of the Fund. Investors should choose the fund type suitable for their investment according to their own preferences and their tolerance for investment risks.