Including the credit risk of bonds, bills and other instruments invested by the fund itself, as well as the door-to-door risk of investments based on transactions (such as repurchase agreements).

Market exposure risk

Market exposure risk refers to the actual market value of money market funds, that is, the risk that the net value of funds valued by market method deviates from the transaction price (usually the face value of funds).

policy risk

Changes in national macro policies, such as fiscal policy, monetary policy, industrial policy and regional development policy, lead to market price fluctuations, affect fund income and generate risks.

economic cycle risk

With the cyclical change of economic operation, the income level of the securities market also changes periodically, and the income level of fund investment will also change accordingly, thus generating risks.

interest rate risk

The fluctuation of interest rate in financial market will lead to the change of price and yield in securities market. Interest rate directly affects the price and yield of bonds and the financing cost and profit of enterprises. The fund invests in bonds and stocks, and its income level may be affected by changes in interest rates.

Operational risks of listed companies

The operating conditions of listed companies are influenced by many factors, such as management ability, industry competition, market prospect, technology update, financial situation, new product research and development, etc. All these will lead to changes in the company's profits. If the listed company invested by the fund is not well managed, its share price may fall, or the profit available for distribution may decrease, thus reducing the investment income of the fund. Listed companies may also undergo unpredictable changes. Although the fund can disperse this unsystematic risk through diversification, it cannot be completely avoided.

Inflation risk

The purpose of fund investment is to preserve and increase the value of fund assets. If there is inflation, the income of the fund's investment in securities may be offset by inflation, thus affecting the preservation and appreciation of the fund's assets.

Risk of bond yield curve change

The risk of bond yield curve change refers to the risk related to the non-parallel movement of yield curve, and a single duration index can not fully reflect the existence of this risk.

reinvestment risk

The decline of market interest rate will affect the reinvestment rate of interest income of fixed-income securities, which is mutually beneficial to the price risk brought about by the increase of interest rate.

credit risk

During the transaction, the Fund may default in delivery or the issuer of the bonds it invests in defaults and refuses to pay the due principal and interest, resulting in the loss of the Fund's assets.

Managing risk

The professional skills, research ability and investment management level of fund managers directly affect their information possession, analysis and judgment on the economic situation and the trend of securities prices, and then affect the investment income level of funds. At the same time, whether the fund manager's investment management system, risk management and internal control system are sound, whether it can effectively prevent compliance risks such as moral hazard, and the professional ethics level of the fund manager will also affect the risk-return level of the fund.

liquidity risk

As a new market in transition, China stock market has a high overall liquidity risk. The stocks and bonds in the fund portfolio will face high liquidity risk for various reasons, which will increase the difficulty of securities trading and increase the subscription cost or liquidation cost. In addition, the redemption demand of fund investors may lead to difficulties in fund position adjustment and asset realization, which will aggravate liquidity risk.

Operational and technical risks

During the operation of each business link, the relevant parties of the Fund may make mistakes or violate the operating rules due to imperfect internal control or human factors, thus leading to risks, such as unauthorized trading, insider trading, trading mistakes and fraud. In addition, in the background operation of open-end funds, due to the failure or error of technical system, it may affect normal transactions and even affect the interests of fund share holders. This technical risk may come from fund managers, fund custodians, registration institutions, sales institutions, stock exchanges and securities registration and settlement institutions.

Compliance risk

Refers to the risk of violating national laws and regulations or the relevant provisions of the fund contract in the process of fund management or operation.

(1) The risks brought by the rapid development of fund business, such as system construction, staffing, risk management and imperfect internal control system; (2) Risks that may be brought about by the financial market crisis and the pressure of industry competition; (3) Force majeure factors such as war and natural disasters may seriously affect the operation of the securities market and lead to the loss of fund assets; (4) Risks caused by other accidents.