However, all products related to investment and financial management are risky. Stocks are risky, and so are funds. Many people only know that the risk of funds is not as big as that of stocks, but they don't know how big the risk of funds is and how the risk of funds comes from. Let's take a look at the detailed introduction.

What are the factors that affect fund risk?

1, investment purpose, the fund mainly makes money by investing in other targets. If most of the investment targets are lost, then the fund is also lost.

2. Policy risks, the development and changes of national policies, lead to fluctuations in fund returns, just as national policies will also lead to the rise and fall of stocks.

3. Interest rate risk. Changes in market interest rates will change bond returns and stock assets. And most of the funds are invested in these, which will naturally be affected.

4. Market risk, also known as external risk, means that the fund is affected by the market environment. For example, the stock market entered a bear market and funds generally fell.

5. Corporate risk, also known as non-market risk, may lead to the decline of the company's share price and affect the income of investing in stock funds due to improper management and poor returns.

According to the different investment targets, the risk level of funds is also different. The risk of money funds is less than that of bond funds and equity funds. According to the degree of risk, funds are divided into three types: low-risk funds, medium-risk funds and high-risk funds.

After reading the above introduction, I believe everyone has a clearer understanding of the factors that affect the risk of funds. Before buying a fund, investors had better make a risk assessment of themselves, so as to better choose the fund type that suits them.