In fact, the state requires that individuals’ ability to bear risks be classified into R1~R5 levels. Individuals are not recommended to purchase financial products that exceed the corresponding risk.

R1 level has the lowest risk and is called the prudent level. The type of income is principal-guaranteed and generally refers to projects such as treasury bonds, deposits, certificates of deposit, structured deposits, annuity insurance, and monetary funds.

R2 has lower risk and is a stable level. Although it is not capital guaranteed, the probability of loss is almost 0. Most banks’ wealth management products, bond funds, pension funds, brokerage wealth management and other projects.

R3 level is a balanced level with moderate risk. There is a certain probability of loss, but it is low. A small number of bank financial products, hybrid funds, and trust products belong to this level.

Be careful with R4 and R5. The risk is high and very high. Not only will the capital not be guaranteed, but the principal will also face the risk of a large loss. But the corresponding interest rate is also very high. Isn't there such a thing as "taking risks out of desperation"? Generally, online loans, stocks, stock funds, index funds, gold investments, etc. all fall into the R4 category. Leveraged products such as commodity spot trading, futures trading, options trading, and financial derivatives are rated R5.

Generally speaking, the highest risk fund products we can buy on the online platform are R4-level stock funds. Generally, these funds are operated by professional fund managers and have professional teams to control risks. The probability of loss is much lower than that of retail investors. The probability of profit for retail investors in stock trading is "1 profit, 2 draws and 7 losses", while fund operations are at least "50-50".

Whether the risk is high or not is not the key issue. In fact, only when there is market demand can such fund products be developed.

Generally speaking, young people in their twenties and thirties can invest in high-risk products such as stock funds, while middle-aged people in their thirties and forties should gradually turn to stable risk products such as bond funds. After the age of fifty, you should gradually withdraw from fully principal-guaranteed products such as various deposits, certificates of deposit, and treasury bonds.