What is a contractual fund?
Contractual fund, also known as unit trust fund, is a fund established by issuing beneficiary certificates in the form of signing fund contracts with investors, managers and custodians as parties.
China's fund form is contract fund, which is the only form of China's fund.
Are contractual funds risky?
1, market risk
As an investment fund, it has its own risks, which generally come from investment risks, political risks, operational risks and purchasing power risks. These risks are inherent and can be reduced, but they are inevitable. Investors generally need to choose a fund investment that suits their own risk level.
2. Self-risk
For the contractual fund itself, the state has promulgated many relevant laws and regulations, which stipulate and clarify the responsibilities and obligations of fund managers and fund custodians. Under the strong supervision of the state, contractual funds are safe and standardized.
How do contract funds reduce risks?
1, reducing market risk
Choose the right time to enter the market, have the ability to analyze the market independently, and always pay attention to the changes of relevant policies and the changes and fluctuations of the investment market; Choose a fund manager with strong allocation and investment ability.
Step 2 reduce your own risk
Generally speaking, in order to reduce the risk in this respect, investors need to buy funds from fund companies or platforms with high formal credit, and fund managers and fund custodians should be professional and excellent.
So much about the risks of contract funds, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.