What does the fund risk level r3 mean?
The risk level r3 of the fund is balanced, indicating that the product risk is moderate and the expected return fluctuates to some extent. Fund risk rating is generally divided into five grades, including: R 1 cautious (low risk), R2 moderate (medium and low risk), R3 balanced (medium risk), R4 enterprising (medium and high risk) and R5enterprising (high risk). With the increase of risk level, the risks that users need to bear will also increase, and the corresponding benefits will be higher.
When investors buy funds for the first time, they need to do a risk assessment questionnaire and can only buy financial products with corresponding risk level or lower. For example, if the investor's risk assessment is r3, then the investor can only buy funds at r 1, r2 and r3 levels, but not at r4 and r5 levels. The risk assessment of ordinary investors is effective. After the expiration of the validity period, investors need to re-do the risk assessment questionnaire and re-evaluate the risks of investors.