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What are the risks of fund increase?
Private placement is a trading method that investors can take, and it is a fund that obtains shares of listed companies by participating in non-public offering. Most investors enter the fund market in order to earn income. So investors need to understand that the most important thing is whether the market will rise in the future. As long as the market is rising in the future, investors can gain income.

What are the risks of fund increase?

1 The fund has a closed period. Because the general lock-up period is at least one year, it is impossible to stop loss during the closed period, and the fund has the risk of loss.

2 Fixed income items are limited, and risks cannot be dispersed in a limited way. Once the fund market falls in the closed period, even if it is purchased at a fixed price, it will not be able to obtain income.

3. The change of fixed net value has its own characteristics. When the market price is greater than the fixed increase, the net value of the fund rises slowly, and when the market price is less than the fixed increase, the net value drops rapidly.

In the fund market, there are discounts and premiums in on-market transactions, and investors may get double benefits of discounted returns and net value growth when they buy discounted fixed-income funds.

The above contents are what investors need to know, and the risk of fund decline during the closed period is very high. Therefore, when investors decide whether to invest in a fund product, they need to know whether the product has a good room for growth in the future. At present, the market is at a relatively low point, and it is very likely that investment funds will make profits in the future.

In addition, investors need to understand that whether fixed-income funds can get fixed-income projects depends on the strength of fund companies, and not all funds can get benefits.