1. Market risk. Funds mainly invest in the securities market, and investors buy funds. Compared with buying stocks, it may be beneficial to control risks, because it can effectively diversify investment and take advantage of experts. Although diversified investment can eliminate the unsystematic risk from a single company to a certain extent, it cannot eliminate the systemic risk in the market. Therefore, when the stock market price fluctuates due to economic factors, political factors and other factors, it will lead to changes in the fund's income level and net value, thus bringing risks to fund investors.
4. Manage competency risks. As a professional investment institution, fund managers do have some advantages over ordinary investors in risk management, such as better understanding the nature, sources and types of risks, being able to accurately measure risks, usually being able to build an effective portfolio according to their own investment objectives and risk tolerance, and updating the portfolio in time when the market changes, so as to control the risks of fund assets within a predetermined range. However, different fund managers have different fund investment management levels and methods.
3. Technical risks. When the computer, communication system, trading network and other technical support systems or information network support is abnormal, it may lead to the risk that the daily subscription or redemption of funds cannot be completed within the normal period, the registration system is paralyzed, the accounting system cannot display the net value of funds within the normal period, and the fund investment trading instructions cannot be transmitted immediately.
4. Huge redemption risk. This is the unique risk of open-end funds. If there are huge redemptions in succession due to market fluctuation or other reasons, fund managers will have difficulties in cash payment, and fund investors may encounter risks such as partial delay or suspension of redemption when applying for huge redemption of fund shares.