There are risks in investing in funds. If you want to buy a fund, you have to bear different degrees of risks. What are the risk sources of funds?

generally speaking, fund investment mainly faces two types of risks.

first, the risk of loss caused by fund fluctuation

second, the risk of not realizing the expected return

first, let's take a look at the first risk, which is also the risk that investors first react to, whether it is for high-risk and high-yield stock funds or relatively stable bond funds.

In the market where the stock market is in decline, the stock may have negative returns for a whole year. If it is in a short time, such as a week or a month, the fluctuation will be even greater. Even if you invest in stocks and bonds at the same time, there is no guarantee that the returns will be positive, because although the returns of bonds are relatively stable, there is no guarantee that you will not lose money at all.

let's take a look at the second type of risk, the risk that the expected income from financial management cannot be realized.

We don't invest in order not to lose money, but to make money. Therefore, earning income is the ultimate goal of our investment, and we should strive to create positive income while worrying about losses.

In the process of investment, if we pay too much attention to the short-term fluctuation of the market, it will be easy to ignore the second risk, which will eventually lead us to set the investment plan too conservatively in the process of investment, and will also affect our investment decision.

For example, in the actual investment process, because we pay too much attention to the short-term performance fluctuation of fund products, we always choose between buying and selling, hoping to keep the income or reduce the loss, rather than considering whether we can achieve our financial goals from the product itself.

knowing these two risks, we should try our best to balance them in future financial management.