Fund is a kind of wealth management product welcomed by investors, which allows investors to enjoy professional investment management services, spread risks and obtain benefits. What about the fund's self-purchase? What are the risks of investment funds? Xi Cai Jun has also prepared relevant contents for your reference.

What happened to the fund's self-purchase?

Self-purchase of funds means that fund companies or fund managers buy their own fund products with their own funds. Self-purchased funds usually occur when the market is in a downturn or shock. It is the fund manager's optimism and support for the market and fund prospects, as well as comfort and encouragement for investors, which is conducive to boosting market confidence and stabilizing market sentiment. In addition, the self-purchase behavior of the fund also means that the fund manager has confidence and requirements for his own performance, because this is not only responsible for investors, but also for himself. If the fund's performance is not good, they will also bear the losses. Therefore, the self-purchase behavior of funds can increase the performance pressure of fund managers and urge them to manage funds more diligently and professionally.

What are the risks of investment funds?

1, market price risk. Market risk refers to the investment loss caused by market price fluctuation. Different types of funds face different market risks. Generally speaking, the market risk of stock funds and hybrid funds is higher, while the market risk of bond funds and monetary funds is lower.

2. Performance risks. Performance risk refers to the risk of performance failure caused by factors such as the investment ability and trading strategy changes of fund managers. Fund performance is related to the investment level and stability of fund managers. Generally speaking, newly established funds or funds that frequently change managers have higher performance risks.

3. Liquidity risk. Liquidity risk refers to the risk that the fund is difficult to redeem and realize due to insufficient market trading volume or trading rules, which is related to the type and scale of the fund. Generally speaking, private equity funds and closed-end Public Offering of Fund, which are smaller or invest in non-standard assets, have higher liquidity risk.