Funds are relatively low-risk products, but they should not be underestimated. The following small series teaches you how to prevent fund risks:

The biggest enemy of fund investment is risk, and how to resolve the risk is the most concerned issue for fund investors. We put forward four measures to help investors calmly resolve the basic risks of investment.

Establish a long-term investment perspective and spread risks through time. Risk is the enemy of investment, and time is the only way to deal with it. Investors should set up reasonable income expectations and don't pursue unrealistic income too much. Long-term stock market investment has many advantages.

(1) Anti-inflation. Assuming that the annual inflation rate is 5%, the 65.438+0 billion yuan will only be 2,000 yuan 30 years later, and only 800 yuan will be there 50 years later, which shows the harm of inflation. Even if you invest in long-term bonds, you may have a negative long-term real return.

(2) Reduce risks. In the short term, the annual return of the stock market fluctuates greatly, but if the term is extended, the return of the stock market is quite stable. We counted the geometric average returns of France, the United States and Britain from 1900 to 2000, and the nominal value of 1 unit currency invested in stocks, long-term bonds and short-term government bonds in 2000. It can be seen that the long-term average annual yield of the stock market is about 10%, which is much higher than the yield of bonds. Other countries we study are also very close. Considering the characteristics of emerging market countries in China, it is realistic for China investors to expect an annual rate of return of around 12%- 15%. In addition, if the capital is a long-term investment, investors are strongly advised to choose stock funds, and bonds are not a good investment variety in the long run.

(3) the huge growth brought by compound interest. 1 unit currency invests in French, American and British stocks from 1900 respectively. 100 years later, that is, in 2000, it reached 109577.4, 18630.0 and 16946 respectively. 1 unit currency. If you invest in long-term bonds, it will reach 832.8, 103.4 and 188.4 unit currency respectively in 2000. It can be seen that the income difference between long-term investment in stocks and bonds is amazing, which also shows that in the long run, the income of stock funds is bound to be higher than that of bond funds.

Risk types of investment base

Credit risk: including the credit risk of bonds, bills and other instruments invested by the fund itself, as well as the door-to-door risk of investment based on transactions, such as repurchase agreements. Market exposure risk:

Market exposure risk refers to the actual market value of money market funds, that is, the risk that the net value of funds valued by market method deviates from the transaction price (usually the face value of funds).

Policy risk: Changes in national macro policies, such as fiscal policy, monetary policy, industrial policy, regional development policy, etc., lead to market price fluctuations, affect fund returns, and generate risks.

Economic cycle risk: With the cyclical change of economic operation, the income level of the securities market also changes periodically, and the income level of fund investment will also change accordingly, resulting in risks.

Interest rate risk: the fluctuation of interest rate in financial market will lead to the change of price and yield in securities market. Interest rate directly affects the price and yield of bonds and the financing cost and profit of enterprises. The fund invests in bonds and stocks, and its income level may be affected by changes in interest rates.

Operational risk of listed companies: The operational status of listed companies is influenced by many factors, such as management ability, industry competition, market prospect, technological update, financial status, new product research and development, etc. All these will lead to changes in the company's profits. 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. Listed companies may also undergo unpredictable changes. Although the fund can disperse this unsystematic risk through diversification, it cannot be completely avoided.

Inflation risk: the purpose of fund investment is to preserve and increase the value of fund assets. [1] If inflation occurs, the income from the fund's investment in securities may be offset by inflation, thus affecting the preservation and appreciation of the fund's assets.

Risk of bond yield curve change: the risk of bond yield curve change refers to the risk related to the non-parallel movement of yield curve, and a single duration indicator can not fully reflect the existence of this risk.

Reinvestment risk: the decline of market interest rate will affect the reinvestment rate of interest income of fixed-income securities, which is complementary to the price risk brought by interest rate increase.

Credit risk: during the transaction, the fund may default on delivery or the issuer of the bonds it invests in defaults and refuses to pay the due principal and interest, resulting in the loss of fund assets.

Management risk: the professional skills, research ability and investment management level of fund managers directly affect their information possession, analysis and judgment on the economic situation and the trend of securities prices, and then affect the investment income level of funds. At the same time, whether the fund manager's investment management system, risk management and internal control system are sound, whether it can effectively prevent compliance risks such as moral hazard, and the professional ethics level of the fund manager will also affect the risk-return level of the fund.

Liquidity risk: As a new transition market, China stock market has a high overall liquidity risk. The stocks and bonds in the fund portfolio will face high liquidity risk for various reasons, which will increase the difficulty of securities trading and increase the subscription cost or liquidation cost. In addition, the redemption demand of fund investors may lead to difficulties in fund position adjustment and asset realization, which will aggravate liquidity risk.

Operational and technical risks: During the operation of each business link, the related parties of the fund may have risks such as unauthorized trading, insider trading, trading errors and fraud caused by imperfect internal control or human factors. In addition, in the background operation of open-end funds, due to the failure or error of technical system, it may affect normal transactions and even affect the interests of fund share holders. This technical risk may come from fund managers, fund custodians, registration institutions, sales institutions, stock exchanges and securities registration and settlement institutions.

Compliance risk: refers to the risk of violating national laws and regulations or the relevant provisions of the fund contract during the fund management or operation.

Other risks: (1) risks arising from the imperfect system construction, staffing, risk management and internal control system brought about by the rapid development of fund business; (2) Risks that may be brought about by the financial market crisis and the pressure of industry competition; (3) Force majeure factors such as war and natural disasters may seriously affect the operation of the securities market and lead to the loss of fund assets; (4) Risks caused by other accidents.