The price unknown risk in the subscription and redemption of open-end funds refers to the fact that when investors purchase and redeem fund shares on the same day, the net asset value of the shares they refer to is the data of the last open day of the fund, but the change of the net asset value of the fund shares from the last trading day to the open day is unpredictable by investors, so they cannot know what price they will trade at the time of subscription and redemption. This kind of risk is the risk that the purchase and redemption price of open-end funds is unknown.
2. Investment risks of open-end funds
The investment risk of open-end funds refers to stock investment risk and bond investment risk. Among them, the risk of stock investment mainly depends on the operating risk of listed companies, the risk of securities market and the risk of economic cycle fluctuation, and the risk of bond investment mainly refers to the risk that interest rate changes affect the income of bond investment and the credit risk of bond investment. The investment risks of funds are usually different with different investment objectives. Income funds have the lowest investment risk, growth funds has the highest risk, and balanced funds are in the middle. According to their risk tolerance, investors can choose the types of funds suitable for their financial situation and investment objectives.
3. Force majeure risk
Force majeure risk refers to the risk brought to fund investors when force majeure such as war and natural disasters occurs.
4. Market risk
Market risks mainly include policy risks, economic cycle risks, interest rate risks, operating risks of listed companies and purchasing power risks.
5. Policy risks
Policy risk refers to the risk brought by market price fluctuation due to changes in national macro policies (such as monetary policy, fiscal policy, industrial policy, regional development policy, etc.). ).
6. Business cycle risk
Business cycle risk means that with the cyclical changes of economic operation, the profitability of various industries and listed companies also changes periodically, thus affecting the trend of the secondary market of individual stocks and even the whole industry sector.
7. Interest rate risk
Interest rate risk means that the fluctuation of market interest rate will lead to the change of stock market price and yield. Interest rate directly affects the price and yield of national debt, and affects the financing cost and profit of enterprises. When the fund invests in treasury bonds and stocks, the income level will be affected by changes in interest rates.
8. Operating risks of listed companies
The operational risk of listed companies means that the operational quality of listed companies is affected by many factors, such as management ability, financial situation, market prospect, industry competition and personnel quality. This will lead to changes in the profitability of enterprises. If the listed company invested by the fund is not well managed, its share price may fall, or the profit available for distribution may decrease, thus reducing the investment income of the fund. Although the fund can disperse this unsystematic risk through investment, it cannot be completely avoided.
9. Purchasing power risk
Purchasing power risk means that the profits of the fund will be mainly distributed in cash, which may lead to a decline in purchasing power due to the influence of inflation, thus reducing the actual income of the fund.