What are the risks of buying a fund?
Credit risk:
Most wealth management products are not guaranteed, and banks are nominally not responsible for guaranteeing the principal or expected income. Moreover, the status of wealth management products in bank liabilities is not clear in law. In case of extreme situation, it is difficult to protect the rights and interests of investors in wealth management products.
Investment risk:
For linked and structured products, the performance of linked targets directly affects the income of wealth management products. Among unstructured products, the investment risk of stocks and other products is relatively high, and its income is closely related to the fluctuation of the securities market.
Exchange rate risk:
For the holders of RMB, the exchange rate risk of foreign currency products should not be underestimated, especially in the context of the continuous appreciation of RMB. In the turbulent foreign exchange market, investors should consider temporarily avoiding foreign currency wealth management products.
Interest rate risk:
Because the interest rate is directly related to the yield level of wealth management products, the interest rate risk is positively related to the term. The longer the term, the greater the interest rate risk, because the greater the possibility of interest rate changes and possible fluctuations.
Policy risk:
The policy orientation of CBRC has brought great uncertainty to the development of wealth management products. Recently, the supervision has been gradually strengthened. It is expected that the investment mode of the asset pool will gradually shift to the operation mode similar to one-to-many special accounts, and the overall rate of return may be affected.
System risk:
The investment risk of a single product cannot be measured and controlled separately, so the problems of some assets are likely to affect other wealth management products. If the total market size of wealth management products is too large and the funds held by banks are too large, the risks will be transmitted to the whole banking system.
Generally speaking, credit risk, investment risk, exchange rate risk, interest rate risk and policy risk are all risks that will be encountered when buying bank fund products. When buying bank fund products, investors should recognize the risks of wealth management products, improve their risk tolerance, and pay attention to reading product manuals and other information when buying.