Fund products have five risk levels, namely: cautious products (R 1), stable products (R2), balanced products (R3), enterprising products (R4) and radical products (R5).
Five risk levels of fund products
R 1 and R2 grades
The investment scope of R 1 and R2 is basically the same, and the proportion of low-risk part of R 1 investment will be higher, which generally belongs to products with guaranteed capital plus expected income, while R2 generally belongs to products with floating expected income and will not promise to guarantee capital. The investment direction of these two grades is basically the same, and they are generally low-risk products such as bank loans, enterprises or national debt.
R3 grade
R3 products generally combine some investment products of R 1 and R2 with some volatile financial products such as stocks, commodities and foreign exchange for asset allocation, and the proportion of high-risk products shall not exceed 30%. This level is not guaranteed, and the guaranteed ratio of structured products is generally above 90%, and the expected income fluctuates to some extent.
R4 level
R4 products are generally invested in financial products with large fluctuations such as stocks, gold and foreign exchange, and the proportion can exceed 30%. The principal is not guaranteed, the risk and expected return are high, and the expected return fluctuates greatly. Due to various factors, the possibility of loss is great.
R5 grade
This level of products can be fully invested in high-risk financial products such as stocks, foreign exchange and gold, and can be invested through derivatives and leverage amplification. The principal risk is extremely high, the expected return fluctuates and the expected return is also high.
How are the grades divided? That's all. I hope it helps you. Warm reminder, financial management is risky and investment needs to be cautious.