Unlike bank deposits and government bonds, funds do not guarantee minimum returns. Therefore, when investing in an open-end fund, you should understand that it has the following risks:

1. Market risk and credit risk of the fund investment object itself. For example, the stock price is easily affected by the performance of listed companies and the prosperity of the industry, and corporate bonds refuse to pay interest or principal because of the default of the issuing company; Manage risks. For example, the ability of fund managers to grasp and predict the market will lead to the risk of investment judgment errors; Liquidity risk.

2. Under normal circumstances, the fund manager must fulfill the effective redemption application of investors. Any investment instrument has liquidity risk, that is, it cannot be realized in time at a suitable price, or it is "sold cheaply" for quick realization.

Therefore, if a large number of investors demand to redeem the fund shares, especially in the case of huge redemption, it is difficult for the fund manager to sell the stocks or bonds in his hand at a reasonable price within one day, then the investor's redemption application will have to be postponed, and he will bear the risk that the net value of the fund shares may fall after the delayed redemption.

Investment funds, also known as mutual funds or mutual funds, are institutions that raise funds through public offering of fund shares and then invest in securities. Investment funds are managed by fund managers and fund custodians, and conduct securities investment activities in the form of portfolio to serve the interests of fund share holders. Investment funds can be operated by closed-end funds or open-end funds:

1. Closed-end investment fund refers to a fund whose total fund share is fixed according to the approved fund contract period, and the fund share can be traded on a legally established stock exchange, but the fund share holder may not apply for redemption.

2. Open-end investment funds refer to funds whose total fund shares are not fixed and can be purchased or redeemed at the time and place agreed in the fund contract.

What is the subject?

1. Fund sponsor. It refers to an investment institution that, according to the basic principles of * * * joint investment, * * * enjoying the benefits and * * * taking risks and some principles of joint-stock companies, uses the mechanism of modern trust relationship to pool the scattered funds of investors in the form of funds to achieve the pre-specified investment purpose. China stipulates that the sponsors of securities investment funds are securities companies, trust and investment companies and fund management companies.

2. Fund custodian. Refers to the safe custody of fund property; Opening fund accounts and securities accounts of fund property according to regulations; Set up separate accounts for different fund assets under custody to ensure the integrity and independence of the fund assets; Keep records, account books, statements and other relevant materials of fund custody business activities; In accordance with the provisions of the fund contract, according to the investment instructions of the fund manager, timely handle liquidation and settlement matters; Institutions that handle matters such as information disclosure related to fund custody business activities.

3. Fund manager. It refers to raising funds according to law, and handling or entrusting other institutions recognized by the State Council securities regulatory authority to handle the sale, subscription, redemption and registration of fund shares on their behalf; Handling fund filing procedures; Manage and keep accounts of different fund properties managed separately, and invest in securities; Conduct fund accounting and prepare fund financial accounting reports; Organizations that prepare interim and annual fund reports, etc.

4. Fund share holders. That is, investors in the fund.