The key factors that determine the fund risk are the investment direction and investment target of the fund, and the fund manager and fund management team will also have a certain impact on the fund risk. Theoretically, equity funds may lose money. The following small series brings losses to all equity funds. I hope you like it.

Are equity funds risky?

Equity funds are risky. The risk of different types of funds depends on the investment direction and investment target of the fund. If the risk of the fund's investment target is relatively large, then the risk of the whole fund is relatively large. On the other hand, if the risk of the investment target of the fund is small, then the risk of the fund is relatively small.

For example, there are two kinds of funds: money funds and bond funds. The investment targets of the money fund are central bank bills, short-term government bonds, corporate bonds, commercial bills, bank time deposit certificates, etc. The investment targets of bond funds are government bonds, corporate bonds and financial bonds. By comparison, we know that the risk of monetary fund investment target is relatively small compared with bond funds, so the overall risk of monetary fund is greater than that of bond funds. Similarly, the investment ratio of stocks in stock funds is not less than 80%, and the risk of stocks is relatively high, so the risk of stock funds is greater than that of money funds and bond funds.

In addition to the investment objectives of the fund will affect the risk of the fund, in fact, the fund manager and fund management team also have a certain impact on the size of the fund risk. With experienced and professional fund managers and management teams, the risk of the fund is relatively small. There is also the difference between the old and new funds, which also has a certain impact on the risk of the fund. The risk of the new fund is relatively higher than that of the old fund. The new fund has no historical data to refer to, and the fluctuation range is relatively large. We all know that risks and returns are relative, and high returns correspond to high risks. Therefore, equity funds have higher returns and larger losses, which are more suitable for aggressive investors with strong risk tolerance.

Are all stock funds losing money?

Theoretically speaking, it is possible for stock funds to lose money, but in practice, they will not lose money, because the essence of stock funds is not to protect capital and interest, but the probability of losing money in practice is very small. Even if the fund contract is terminated for some reason, the fund manager will liquidate the fund property, and the fund manager will distribute the remaining property after liquidation according to the share proportion held by the fund share holders. To sum up, stock funds may lose money in theory, but there is basically no possibility of losing money in practice, and the probability is very low. Investment itself is risky. We should make corresponding investments according to our own risk tolerance, and we should not operate blindly. Investment is risky, so be careful when buying.

Three operating skills can be referenced.

1. Bollinger Bands have a high success rate of continuously falling below the lower rail. When the bollinger band of the whole stock market continuously fell below the lower rail, it was difficult for this stock to continue to fall, so it basically bottomed out at this time. If the Bollinger Band BB is less than 0 and there are signs of deviation, then you must buy it immediately at this time, which is also the best time to bargain-hunting.

Second, the success rate is higher when the William indicator hits the bottom many times. Generally, in the middle of the stock market, the decline of the market will be maximized. At this time, the William indicator will also enter a medium-term adjustment state. If there have been many clicks at this time, it may have entered the mid-term adjustment stage. Since the adjustment has begun, I believe that the stock price will be adjusted back immediately.

Third, when the market enters the selling climax, the trading volume can expand to the bottom. Generally, some small and medium-sized investors will start selling when they see the stock price plummet, which will lead to the climax of selling. In the meantime, some bears have succeeded, so they will immediately start a callback. If investors can persist until this time, they can start bargain hunting.