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Is it risky to buy a fund? What are the risks of buying a fund?
As banks expect the annualized interest rate to decrease, more and more retail investors invest in funds. As a small white, is it risky to buy a fund? Fund is a kind of venture capital, and its risk level is different according to different fund products. The main risk items are as follows:

How to invest in fund financing and how to invest in private equity funds.

What are the risks of buying a fund?

1, institutional risk

In the market, the imperfection of the system is the systematic risk of securities investment. As an investment tool, the securities market and funds are in a transitional stage of development, and the laws and regulations may not be perfect.

2. Asset risk

Stocks, bonds or money market instruments have systemic risks caused by changes in government policies and investors' risk preference for expected annualized returns. When the risks change, the expected annualized expected returns of funds with them as the target will also have the risk of fluctuation.

3. Risk of fund managers

If securities investment fund managers have shortcomings in knowledge structure, professional experience, judgment and decision-making ability, it may lead to unsatisfactory actual performance and bring risks to investors.

4. Risk of fund operation

In operation, the financial health, internal risk control ability and operational efficiency of fund managers and custodians may have a negative impact on the assets or expected annualized expected returns of the fund.

5. Liquidity risk

The liquidity risk of securities investment funds comes from two aspects:

(1) When investors need funds, they have to sell their fund shares, which leads to risks in price and time;

(2) When all the funds to be redeemed exceed the cash reserve of the fund and the fund manager has to sell the securities in the portfolio, he suffers the risk of price and quantity. Investors generally need to face the risk of "huge redemption limit", that is, when the redemption share of the fund received on a certain day exceeds 65,438+00% of the total share of the fund, the fund has the right to apply for postponement of the processing of the over 65,438+00%, which means that investors are faced with a huge risk of not being able to redeem the fund in time.

6. Managing risks

The knowledge, decision-making, experience and skills of fund managers will affect the expected annualized expected return level of funds. Therefore, there is a great correlation between the manager's management ability and the expected annualized expected return ability of the fund, and it can even be said that the fund manager's factors will affect the expected annualized expected return level of the fund.

How to reduce the risk of fund investment;

The first step is to reduce investment risk through portfolio investment. First, according to the degree of risk acceptance. If you are more active, or have higher risk tolerance, it is better to use partial stocks, and vice versa. Secondly, you can choose different funds of 2-3 fund companies to diversify investment risks. At the same time, choose the fund with excellent performance in the product.

The second step is to check whether the fund rating is good enough. If you are an ordinary office worker, you have some savings at work, and you want to preserve and increase the value of your wealth through fund management, but you don't have time to study the recruitment brochures and regular reports of fund companies, or you don't have the professional knowledge to evaluate funds at all. It is a simple but effective method to pay regular attention to the evaluation of fund products by rating agencies.

The third step is to avoid funds that change hands too frequently. In the long run, funds with low turnover rate perform better, which shows that it is valuable for fund managers to stick to their investment philosophy. Although sometimes some investment ideas are not suitable for a certain stage of the market, it is valuable to keep up with market changes, but few fund managers can do this.

The fourth step is to choose a fund manager with the right style. A good fund manager can seize the opportunity when it goes up and control the retreat when it goes down.

Fifth, the stability of the core team of wealth management companies is very important. As we all know, financial management and the stability of the investment and research team play a vital role in the performance of the fund.