Is it risky to buy a fund? A question that all people who are interested in the fund will ask. Although the fund can bring benefits to itself, is it really risk-free? The following is The Risk of Buying Funds written by Bian Xiao. I hope I can help you.

Is it risky to buy a fund?

The risk of fund investment does not depend on the type of fund, and the risk order of fund is as follows: money fund

As can be seen from the above ranking:

1. Money funds and bond funds have the least risk. In practice, money funds and bond funds are almost risk-free, just a matter of earning more and earning less. The main risks of these two funds come from: when the inflation rate is greater than the fund's income, it is equivalent to a loss.

2. Hybrid funds and index funds have moderate risks and are suitable for some investors who want to pursue high returns but are worried about taking risks. For index funds, buying index funds is equivalent to buying a basket of stocks, and the risk of each stock is reduced after weighted average, so the risk is moderate.

3. Equity funds and private equity funds mainly invest in the stock market, and some private equity funds may also invest in futures options, so the risk is high, and investors can choose fund investment according to their own risk tolerance.

Is it risky to buy a fund?

Money is risky. They are not financial products with guaranteed capital, and there is the possibility of losses. However, compared with stocks, funds are less risky. At the same time, different types of funds have different risks. Investors can judge the risk of the fund according to the following methods:

1, which is judged according to the risk level of the fund.

The risk level of the Fund is divided into five levels: R 1, R2, R3, R4 and R5, in which R 1 is the lowest risk level and R5 is the highest.

2, according to the fund investment objectives to judge.

Investors can judge the risk level of funds according to the target of investment. For example, the risk level of funds investing in the stock market is higher than that of funds investing in the bond market, while the risk level of funds investing in the bond market is higher than that of funds investing in the money market.

3, according to the withdrawal rate, Sharp ratio to judge.

The greater the retracement rate, the higher the risk of the fund, the greater the Sharp ratio, and the better the return risk performance of the fund.

Is it risky to buy a fund?

The risks of buying different funds are different, so for example, the risks of money funds and bond funds are relatively low, while the risks of mixed funds are medium and high, so we can't generalize the risks of funds, so we must say the risks according to the types of funds. But no matter what kind of fund, risks and benefits coexist.