Management risk: in the process of fund management, the knowledge, experience, judgment, decision-making and skills of fund managers will affect their possession of information and their judgment on the economic situation and the trend of securities prices, thus affecting the level of fund income.
Liquidity risk: for open-end funds, fund managers are obliged to accept the subscription and redemption of investors on all open days of the fund. Because the open-end fund has not been launched in China for a long time, and the experience of dealing with fund redemption is insufficient, and the China stock market fluctuates greatly, the trading volume often drops sharply when the market falls. If a large number of fund redemptions occur at this time, it will make it difficult to realize the fund assets and the fund will face liquidity risks.
Credit risk: the fund defaults during the transaction, or the bond issuer invested by the fund defaults and refuses to pay the due principal and interest, or the bond price declines due to the deterioration of the credit quality of the bond issuer, resulting in the loss of fund assets.
Legal risk: due to laws and regulations, some market behaviors are restricted or contracts cannot be executed normally, resulting in the loss of fund assets.
Operational or technical risks: risks arising from operational errors or violations of operational procedures caused by internal control defects or human factors in the course of all aspects of business operations. In all kinds of trading behaviors or backstage operations of the Fund, normal trading or investors' interests may be affected due to faults or errors in the technical system.
Other risks.