Although fund risk funds diversify funds in the form of investment portfolios to achieve the purpose of reducing risks, after all, no investment tool is immune to risks, and securities investment funds are naturally no exception. Therefore, investors When choosing a fund, you must pay attention to the following risks: 1. Liquidity risk As far as open-end funds are concerned, some funds include in the fund trust contract in order to avoid large-scale redemptions by investors when the market takes a turn for the worse and damage the operation of the fund. There is a redemption restriction clause, which stipulates that when the redemption amount accounts for a certain ratio of the fund's total net asset value on a certain day, the fund company has the right to temporarily stop investors' redemptions. When this special situation occurs, investors may want to sell but cannot sell the units they hold. As for closed-end funds, like general listed stocks, they may not be able to sell smoothly when the market is light and trading volume shrinks. This is the so-called liquidity risk. 2. Discount risk: After a closed-end fund is listed, it will be like a normal stock transaction. The market price after listing will be affected by the supply and demand relationship in the stock market, and price fluctuations may not necessarily be synchronized with the net value. When the stock market is in a downturn, closed-end funds generally show a discount (that is, the market price is lower than the net value). Since it is a closed-end fund, investors cannot apply to the fund company for redemption at net value, so they must endure the pain of "selling at a discount" or "patiently holding on" in the centralized trading market. At present, there are provisions in the trust contracts of various foreign closed-end funds. After the fund is listed for a certain period, if the discount rate exceeds a certain ratio for several consecutive trading days, a certain proportion of the beneficiaries of the fund can initiate a beneficiary meeting and resolve Whether to change the closed-end fund to an open-end fund. 3. If management risk investors directly invest in stocks, the stock price of the invested listed company may fall sharply due to poor operation, and the investment may be damaged or there may be no dividends to be divided; and if the investor hands over the funds to the fund management company for operation, the investor may If you choose the wrong fund manager company, fund performance may lag behind funds of the same type due to poor management and operation. 4. Beta risk: Securities investment funds use investment portfolios to diversify the specific risks of individual stocks, but they still cannot avoid risks belonging to the entire market, such as downturns in the entire stock market or economic recession. As for individual funds, they can be positive or stable due to different operating characteristics of the fund, so the degree of volatility of the fund relative to the entire market will also be different. The risk indicator that measures the degree of volatility is called the beta coefficient. Each fund can find a beta coefficient value that represents its degree of volatility at different times. So how do we interpret the beta coefficient value? Since the beta coefficient of the stock index in the securities market is 1, when the beta coefficient of a fund's net value during the same period is greater than 1, it means that its risk and return have a higher chance of being greater than the stock market, and such a fund will gain when the market rises. Although the profit is considerable, when the market is not good, it often falls deeper than the overall level of the market. On the other hand, if a fund's beta coefficient is less than 1, it means that when the stock market rises, it will rise less than the entire stock market, but when the stock market falls, the fund's decline will also be lower. Although there are bound to be some potential risks when investing in securities investment funds, investors can avoid unnecessary risks as long as they spend a little effort. Generally speaking, you can refer to the following simple hedging principles: 1. Read the public prospectus carefully and do not invest a large proportion of funds in funds (open-end) with restricted redemption clauses. In addition, diversified funds hold funds of the same type issued by different fund companies, which can simultaneously reduce (or balance) liquidity risks, management risks and other risks. 2. Collect information such as shareholding ratios and various stock investment details published by fund companies in newspapers or quarterly reports every week or every month to understand the operating strategies of fund companies. 3. When the premium of closed funds (that is, the market price is higher than the net value of the unit) drops from a high point and may reverse to a discount, it means that the status of the fund's chips and the stock market will deteriorate. At this time, the discount risk of holding the fund is the highest, so it is advisable to hold the fund. Be alert. On the contrary, if the discount range exceeds 20%, based on historical experience, the market price of the fund has been oversold, and the room for further expansion of the discount range is limited. The potential for transferring premium in the future is relatively high, and you can consider buying and holding.