Open-end fund refers to an investment fund whose scale is not fixed, but which can issue new shares or be redeemed by investors at any time according to market supply and demand. Here, Bian Xiao will share with you whether it is risky for banks to buy funds for your reference.
Is it risky for banks to buy funds?
Banks are losing money when they buy foundations, and the amount of losses mainly depends on what type of funds investors buy. Funds are divided into different fund types according to the investment objects, and different fund types correspond to different investment risks. Some funds have great investment risks, and some investment risks can be ignored.
Common funds in the market include money funds, bond funds, index funds, stock funds, hybrid funds, QDII funds and so on. Among them, the investment risk of money fund can be ignored, the investment risk of bond fund is relatively small, and the investment risk of stock fund, hybrid fund and index fund is great. But the investment risk is high, and the corresponding investment income is relatively high, and the investment income of bond funds and money funds will be relatively small.
If users buy hybrid funds, stock funds, index funds, etc. In the bank, there will definitely be the possibility of principal loss. Funds are highly volatile investments, and the return on investment will change every day. The more principal the user invests, the different the daily profit and loss will be. The more principal, the greater the loss or profit. If you choose a low-risk money fund, you will not lose money as long as you hold it for a long time. If you don't have enough money to invest in this kind of fund, you need to invest a lot of principal, otherwise the fund will have little income.
When choosing a fund investment, it is recommended to buy it according to your own economic situation and your own risk tolerance.
Is it risky for banks to buy funds?
Different funds have different risks. For example, money funds and bond funds are low-risk, while hybrid funds are medium-high risk. Therefore, we cannot generalize the risks of funds, but must focus on the types of funds. But no matter what kind of fund, there are risks, but the probability of low-risk loss is relatively small, and both medium-high risk and high risk may lose money.
Depending on the fund, such as the money fund, the money fund contract generally does not guarantee the security of the principal, but in fact, due to the nature of the fund, the money fund has the lowest risk among all kinds of funds, and there are few cases of principal loss in reality. Generally speaking, money funds are regarded as cash equivalents.
Is investment bank capital risky?
First of all, we must know that any wealth management product is risky, and so is the bank's funds. And the bank's funds are not necessarily issued by the bank. Many banks are consignment platforms. The safety factor of banks selling fund products to fund companies is the same as that of fund companies, with little difference, and banks will not be responsible for fund products.
Secondly, different types of funds have different risks. For example, the risks of money funds and pure bond funds are relatively small, while the risks of mixed funds, index funds and stock funds are relatively large. Investors can consider whether to buy according to their risk tolerance.
From the perspective of the banking platform, it is safe. As a third-party consignment platform, the bank will not be responsible for the fund products, but the funds inside will be audited by the bank, and there will be no false funds and no fraud.
From the perspective of the fund itself, different types of funds have different risks. Therefore, there is no guarantee that the money inside will not be lost, which means that it may be lost, and its security cannot be guaranteed. Investment is risky, so financial management must be cautious.
Summary: First of all, we must know that any wealth management product is risky, and so is bank funds. In addition, from the perspective of banking platform, investment bank funds are safe, because the funds inside are audited by banks, and there will be no false funds and no fraud. From the fund itself, the types of funds are different and the risks are different, so its security cannot be guaranteed. Investment is risky and financial management needs to be cautious.