I. Market Risk
Market risk is an inevitable risk in investment products, which refers to the changes in the value of investment products due to market fluctuations. As the active treasure of Tian Tian Fund mainly invests in short-term money market products, its market risk is low, and generally it will not change greatly due to market fluctuations.
Second, credit risk.
Credit risk refers to the default risk of financial institutions or debtors due to poor credit status. The investment objects of Tian Tian Fund Lifetime Bao are mainly monetary funds launched by some large financial institutions with good credit. In the case of endorsement by a large financial institution, its credit risk is low. However, investors still need to pay attention to whether fund managers can handle possible credit events in time and take corresponding risk management measures.
Three. liquidity risk
Liquidity risk refers to the situation that investors may not be able to meet the redemption demand when they need to redeem fund shares in the case of shortage of funds. Tian Tian Fund's active treasure can be taken with the deposit, and its liquidity risk is low. However, if the net asset value of the fund falls sharply, investors may suffer losses when redeeming.
Fourth, inflation risk.
Inflation refers to the decline in the purchasing power of money. As the active treasure of Tian Tian Fund mainly invests in short-term money market products, the yield is generally low. If the inflation rate is greater than the yield of the current treasure, the currency held by investors will suffer losses due to the decline in purchasing power.
Based on the above analysis, the risks of Tian Tian funds are mainly credit risk and inflation risk, but they are relatively small. Investors should pay attention to the net value of fund shares and understand the specific situation of investment products when purchasing daily fund initiative treasure in order to adapt to their own risk tolerance.