As a beneficiary certificate, the fund manager manages assets on behalf of investors, but does not bear the risk of investment loss and does not guarantee the safety of principal. After the fund is raised, it will eventually invest in various securities. Therefore, the macro-environment of the market, the development prospect of the industry, the valuation level of listed companies, the competitiveness of companies, the behavior of market participants and other factors will inevitably lead to certain risks in fund investment, thus generating the possibility of profit and loss.

1, the market risk and credit risk of the fund investment object itself, such as the stock price is easily affected by the performance of listed companies and the prosperity of the industry, and the corporate bonds refuse to pay interest or principal due to the default of the issuing company; Manage risks. For example, the ability of fund managers to grasp and predict the market will lead to the risk of investment judgment errors; Liquidity risk.

2. Under normal circumstances, the fund manager must fulfill the effective redemption application of investors. Any investment instrument has liquidity risk, that is, it cannot be realized in time at a suitable price, or it is "sold cheaply" for quick realization. Therefore, if a large number of investors demand to redeem the fund shares, especially in the case of huge redemption, it is difficult for the fund manager to sell the stocks or bonds in his hand at a reasonable price within one day, then the investor's redemption application will have to be postponed, and he will bear the risk that the net value of the fund shares may fall after the delayed redemption.