1, system risk:

Policy risk (such as trade war), economic cycle fluctuation risk (bull-bear market rotation), etc.

Reply as follows

Although system risk is also called non-dispersible risk, we still have coping strategies.

Choose fund managers with scattered industries. If an industry is accused because of policy changes or market style rotation, then when the risk comes, adopting the strategy of industry diversification can completely minimize the loss, and less loss means earning.

2. Non-systematic risks:

There will be credit risk, operational risk and financial risk in the enterprises corresponding to the stocks held by the fund.

Reply as follows

Choose a fund manager with a balanced position, because the position of a single stock is not high, even if the company is thunderstruck, the loss is not big, thus diluting.

3. Liquidity risk

The fund was purchased or redeemed on a large scale in a short period of time, and the scale of the fund soared. Fund managers didn't have the ability to manage huge amounts of money before.

The scale plummeted, completely destroying the investment plan.

Reply as follows

Stay away from fund managers whose fund size fluctuates greatly in the short term, so as to stay away from liquidity risk.

4. Managing risks:

The investment level of fund managers can't adapt to the market, fund managers make mistakes and investors lose money!

respond

Choose multiple fund managers with stable past performance to minimize management risks (don't worry too much, relax).

There is a high probability that the great gods will continue to be excellent. Even if the ability of individual fund managers declines, it is a slow process. It will not directly turn apples into poison, and the probability that many great gods suddenly become fools is completely negligible.

The Theory of "Impossible Trinity" in Investment

Triangle: security (risk), liquidity (time) and profitability.

Many people once had an ideal: buy a low-risk fund, which can be redeemed in a short time and get high returns.

The ideal is beautiful, and the reality is very skinny. In fact, there is no financial management method that satisfies all three at the same time.

Security, liquidity and profitability can't have both, and one must be abandoned.

1, choose safety and liquidity, and give up profitability.

For example, demand deposits, various balance treasures, and national debt.

2. Choose safety and profitability, and abandon liquidity.

Like the house a few years ago.

3. Choose liquidity and profitability, and abandon safety.

For example, the stocks in the bull market, as well as the previous P2P.

This is the impossible trinity in investment, and you can only choose one and abandon one.

If there is a product that has all three, a suitable scam! Watch out for that dead chicken!

Application of impossible trinity in fund

Choose profitability and security at the expense of liquidity.

For a long time, the risk was diluted by strategy, so as to obtain safety.

This is to obtain the optimal solution with high income, and there will be no other better choice.

Opportunism will be severely punished by Mr. Market one day!

The biggest risk is actually human nature. Endless greed leads to the human nature of chasing up and killing down. How to avoid the risk of human nature in investment is limited, and we will talk about it later!

Don't keep asking about the fund code. The code given is simple. Just giving the code can't teach investors to get high returns for a long time!

We'll talk about the specific funds later, please pay attention!

I don't want to learn anything, I can't make money, God helps those who help themselves!