Any wealth management product has both benefits and risks. The higher the risk, the higher the income. When we bought funds, we found that some funds had tips of medium and high risks. So what does high risk mean in the fund?

What do you mean by high risk of funds?

Medium-high risk refers to the high volatility of the fund and the high probability of losing the principal. The assets of medium and high-risk funds are mainly allocated to financial assets with higher risks, such as stocks. We all know that the volatility of stocks is relatively large, which will naturally be reflected in the fund, making the net value of the fund fluctuate greatly. Investors can understand the specific risk situation from the trend of the historical net value of the fund.

The risks of wealth management products exist objectively, but they are often controllable. Risk management is also an important part of fund investment. If the risk of a wealth management product is relatively high, investors can control the risk by controlling positions, trading frequency and holding time.