As an important part of the fund investment market, investors are most concerned about the risks and expected returns of investment products. The stock itself is a high-risk investment target, so is the stock fund risky? What are the risks? Let's take a look.

Stock fund

Equity fund refers to the fund with stocks as its main investment product, which has high risk and high expected return. As a high-risk investment product, the risk is higher than most hybrid funds, bond funds and index funds. Where does its risk come from?

Risks of investing in stock funds

investment risk

The risk of stock investment mainly comes from the management risk of listed companies and the risk of stock market. The investment risk of a fund usually varies with different investment objects. Equity funds are risky in all kinds of investment funds, so investors need to invest carefully according to their own risk tolerance.

market risk

Market risk generally includes policy risk, interest rate risk, business risk, economic cycle risk and purchasing power risk.

1. Policy risk: Policy risk refers to the risk brought to investors by major changes in the government's policies on the securities investment market or the introduction of important measures and regulations, which cause market fluctuations.

2. Interest rate risk: Interest rate risk means that the fluctuation of market interest rate will lead to the change of securities market price and expected rate of return. Interest rate directly affects the expected rate of return on investment and the financing cost and profit of enterprises, thus affecting the price of investment targets.

3. Operational risk: On the one hand, operational risk refers to the risks brought by the operation of the invested listed company, such as financial risk, industry competition risk and decision-making risk. On the other hand, it is the decision-making risk and operational risk brought by the investment manager of stock funds.

4. Business cycle risk: As we all know, the economic operation is cyclical, and the profits of various industries and listed companies change periodically, which will affect the transaction price and expected net income of the economy.

5. Purchasing power risk: In the final analysis, purchasing power risk is the influence of currency changes.

So much about the risks of equity funds, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.