As long as investment is mentioned, most people will think of investment risks. For various funds, the greater the risk, the greater the expected annualized expected return. How much risk can investors bear?

Let’s take a look at the risks of various funds together. Once you understand the risks of funds, you will be much more confident when investing calmly.

1. The risk of unknown prices for the subscription and redemption of open-end funds. The risk of unknown prices for the subscription and redemption of open-end funds means that when investors subscribe and redeem fund units on the same day, the net asset value of the units they refer to is the previous fund opening.

data, and investors cannot predict the changes in the net asset value of fund units from the previous trading day to the opening day. Therefore, investors cannot know at what price the transaction will be made when subscribing and redeeming. This risk

It is the risk of unknown subscription and redemption prices for open-end funds.

2. Investment risks of open-end funds The investment risks of open-end funds refer to stock investment risks and bond investment risks.

Among them, stock investment risks mainly depend on the operating risks of listed companies, securities market risks and economic cycle fluctuation risks, etc. Bond investment risks mainly refer to the risks of expected changes in annual interest rates affecting the expected annualized returns of bond investments and the credit risks of bond investments.

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Funds have different investment objectives and generally have different investment risks.

The investment risk of expected annualized expected return funds is the lowest, growth funds have the highest risk, and balanced funds are in the middle.

Investors can choose fund types that suit their financial situation and investment goals based on their risk tolerance.

3. Force majeure risk Force majeure risk refers to the risk brought to fund investors when war, natural disasters and other force majeure occur.

4. Market risk Market risk mainly includes policy risk, economic cycle risk, expected annualized interest rate risk, listed company operating risk, purchasing power risk, etc.

5. Policy risk Policy risk refers to the risk arising from market price fluctuations due to changes in national macro policies (such as monetary policy, fiscal policy, industry policy, regional development policy, etc.).

6. Economic cycle risk Economic cycle risk refers to the cyclical changes in the profitability of various industries and listed companies with the cyclical changes in economic operations, thus affecting the trend of individual stocks and even the secondary market of the entire industry sector.

7. Expected annualized interest rate risk Expected annualized interest rate risk means that fluctuations in market expected annualized interest rates will lead to changes in security market prices and expected annualized expected returns.

The expected annualized interest rate directly affects the price of government bonds and the expected annualized expected rate of return, affecting the financing costs and profits of enterprises.

The fund invests in treasury bonds and stocks, and its expected annualized return level will be affected by changes in expected annualized interest rates.

8. Listed company operating risk Listed company operating risk means that the operating quality of a listed company is affected by a variety of factors, such as management capabilities, financial status, market prospects, industry competition, personnel quality, etc., which will lead to changes in the company's profits.

If the listed companies invested by the fund are not operating well, their stock prices may fall, or the profits that can be used for distribution are reduced, resulting in a decline in the expected annualized return of the fund's investment.

Although funds can diversify their investments to diversify this unsystematic risk, they cannot completely avoid it.

9. Purchasing power risk Purchasing power risk means that the fund's profits will be mainly distributed in the form of cash, and cash may cause a decline in purchasing power due to the impact of inflation, thus causing the fund's actual expected annualized expected return to decline.