1. Equity funds face the risk of principal loss because they are not capital preservation funds;

2. As far as the stock market is concerned, some stock prices fluctuate abnormally, which may reach about 50%, which means that the decline of stock funds may also reach 50%;

3. The biggest risk is that the stock market has plummeted or the stock has withdrawn from the market. However, this is basically impossible. On the one hand, it is held by professional institutions, and its security is relatively guaranteed. On the other hand, it should be no problem for multiple stocks to hedge their risks.

Many investors will be at a loss when they see that their stock funds have been falling, that is to say, "Is the stock fund losing money?" The third kind of psychology.

In fact, looking back at the historical trend of stock markets around the world, the so-called stocks all fell in a certain period of time. No stock has ever fallen forever, but "it will fall if it rises for a long time, and it will rise if it falls for a long time" When the general stock fund continues to fall at a certain stage, it is also a severe test for investors' psychology.

According to different standards, securities investment funds can be divided into different types:

1. According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.

2. According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.

3. According to the difference of investment risk and income, it can be divided into growth fund, income fund and balanced fund.

4. According to different investors, it can be divided into four categories: bond fund, stock fund, money fund and hybrid fund.