What are the risks of personal finance?
1, market risk
The expected income of wealth management products is obtained by investing in various assets in the market. Different wealth management products correspond to different investment markets. For example, the familiar Yu 'ebao is essentially a money fund.
Monetary funds generally invest in bank certificates of deposit and bank bonds, and the risks of these assets are very small. Unless there is something wrong with the bank, the security is very high.
Relatively speaking, fund stocks invest in the stock market, and the corresponding market risks are great. Sometimes the whole market is risky, and it is useless to buy any stocks, but you still lose money, because you can't avoid market risks, such as the financial crisis in 2008, the stock market crashes of 15 and 16, and so on.
2. Institutional risks
Institutional risk refers to the risk of product issuers. As we all know, R 1-R2 banks have low financial risk. The key is that its issuer is a bank. If it's a bank's bancassurance financing, the bank will definitely not care so much if something goes wrong.
There are also bonds, which are issued by the state, local governments, enterprises and companies. According to different issuers, the risk of bonds is different, which is institutional risk.
3. Personal risk
Personal risk can be understood as the risk caused by oneself. For example, if you participate in the fund's fixed investment, you can't stand it at the low market level, or you need money badly, and finally cut your meat and quit. This loss is caused by personal risk.
Well, that's all for personal financial risks. I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.