Although funds spread funds in the form of portfolio to reduce risks, after all, no investment tool can avoid risks, and securities investment funds are no exception. Therefore, investors must pay attention to the following risks when choosing funds:

1. Liquidity risk As far as open-end funds are concerned, in order to avoid a large number of redemptions by investors when the market plummets, some funds have a limited redemption clause in the fund trust deed, stipulating that when the redemption amount accounts for a certain proportion of the total net assets of the fund, the fund company has the right to temporarily stop the redemption of investors. When this special situation happens, investors may want to sell but can't sell their units. As for closed-end funds, like ordinary listed stocks, they may not be able to get rid of them smoothly when the market is light and the turnover is shrinking. This is called liquidity risk.

2. After the closed-end fund with discount risk is listed, it will be the same as the general stock trading. The market price after listing will be affected by the relationship between supply and demand in the stock market, and the price fluctuation may not be synchronized with the net value. When the stock market is depressed, closed-end funds generally present a discount (that is, the market price is lower than the net value). Because it is a closed-end fund, investors can't apply for net redemption from fund companies, so they must endure the pain of "selling at a discount" or "patiently locking" in the centralized trading market.

At present, the trust deed of foreign closed-end funds stipulates that if the discount rate exceeds a certain percentage for several consecutive trading days after the fund is listed for a certain period of time, a certain percentage of beneficiaries of the fund can initiate a beneficiary meeting to decide whether to change the closed-end fund into an open-end fund.

3. Managing the direct investment of venture capitalists in stocks may lead to a sharp drop in stock prices due to poor management of listed companies they invest in, resulting in investment losses or no dividends; But investors give funds to fund management companies to operate. If investors choose the wrong fund management company, it is also possible that the fund performance lags behind the same type of fund due to poor management and operation.

4. Beta risk securities investment fund can use the portfolio to spread the specific risks of individual stocks, but it still can't avoid the risks belonging to the whole market, such as the depression of the whole stock market or economic recession. As far as a single fund is concerned, due to the different operating characteristics of the fund, there will be positive or stable points, so the degree of fluctuation of the fund relative to the whole market will be different. The risk index to measure this fluctuation degree is called beta coefficient, and each fund can find a beta coefficient value representing its fluctuation degree in different periods.

So how do we explain the value of β coefficient? Because the beta coefficient of the stock index in the securities market is 1, when the beta coefficient of a fund's net value in the same period is greater than 1, it means that its risk and return are higher than those in the securities market. Such funds make considerable profits when the market rises, and often fall deeper than the overall market level when the market is not good. On the other hand, if the beta coefficient of the fund is less than

1 means that when the stock market rises, the increase is less than the whole stock market, but when the stock market falls, the decline of the fund is relatively low.

Although there are some potential risks in investing in securities investment funds, investors can avoid some unnecessary risks with a little effort. Generally speaking, you can refer to the following simple hedging principles:

1. Read the prospectus carefully and don't invest too much money in funds with limited redemption terms (open-ended). In addition, decentralized funds, holding the same type of funds issued by different fund companies, can simultaneously reduce (or balance) liquidity risks, management risks and other risks.

2. Collect weekly and monthly information on the shareholding ratio and various stock investment details published by the fund company in newspapers or quarterly reports, and understand the operation strategy of the fund company.

3. When the premium of closed-end funds (that is, the market price is higher than the unit net value) goes down all the way from the high point and may be reversed to discount, it means that the chip status of funds and stock markets will deteriorate. At this time, the discount risk of holding funds is the highest, so be vigilant. On the other hand, if the discount rate exceeds 20%, according to historical experience, the market price of the fund has already oversold, the room for further expansion of the discount rate is limited, and there is great potential to turn into a premium in the future, so you can consider buying and holding it.