1.** Market risk * *: the price of the fund investment target (such as stocks, bonds, currencies, etc.). ) is influenced by many factors, including political, economic, industry and company specific factors. These factors may lead to fluctuations in the market price of fund investment, thus affecting the fund's income.
2.** Interest rate risk * *: Interest rate changes will affect the price and interest income of fixed-income securities. When the interest rate rises, the price of existing bonds will fall and the interest income of the fund will also be affected.
3.** Credit risk * *: Issuers of fixed-income securities such as bonds and bills invested by the Fund may not be able to pay interest or repay the principal on schedule, resulting in investment losses of the Fund.
4.** Liquidity risk * *: The liquidity of a fund depends on the liquidity of its portfolio. If the securities invested by the fund are difficult to sell in the market, the fund may face difficulties in realizing it and cannot meet the redemption needs of investors.
5.** Managing risk * *: The management team of the fund has an important influence on the investment strategy, risk control and operation management of the fund. If the ability of the fund management team is insufficient or changes, it may have a negative impact on the fund performance.
6.** Expense risk * *: The expenses of the Fund include management fees, custody fees, subscription fees and redemption fees. These expenses will be directly deducted from the assets of the fund, thus affecting the net income of the fund.
7.** Exchange rate risk * *: For funds investing in overseas markets, exchange rate fluctuations may affect the fund's return. If the currency of the fund is different from the currency of the market where the investment target is located, exchange rate fluctuations may lead to changes in the return of the fund.
8.** Legal risk * *: The establishment, investment operation and liquidation of the fund need to comply with various laws and regulations. If the fund or its management team fails to comply with relevant laws and regulations, they may face legal proceedings or penalties, thus affecting the performance of the fund.
In order to reduce investment risks, investors can adopt the following strategies:
1.** Diversified investment * *: Reduce the impact of a single investment on the overall portfolio by investing in different types of funds or investment targets.
2.** Long-term investment * *: Short-term market fluctuations may lead to fund price fluctuations, but in the long run, the fundamentals of the economy and the securities market will determine the performance of the fund.
3.** Choose the right fund * *: Choose the fund that suits your risk preference according to your risk tolerance and investment objectives.
4.** Regular review * *: Regularly review the performance and portfolio of the fund to ensure that the fund still meets its investment objectives and risk tolerance.