First of all, we must know that any investment activity is risky. In fact, for most investors, the concept of risk can be summed up as: "Will my investment suffer losses? What is the possibility of a loss? " . So, what is systemic risk? . The so-called systemic risk is the risk caused by the uncertainty of political, economic, social and other environmental factors and the impact on the price of the whole market (such as finance and stock market). This kind of risk is not only harmful to a specific enterprise or industry, therefore, this kind of risk cannot be eliminated by diversifying investment. So it is also called undivided risk.

Two. What is non-systematic risk?

Understanding systemic risk is not difficult to understand non-systemic risk. Obviously, non-system risk corresponds to system risk. Non-systematic risk is the risk caused by specific events of individual companies, enterprises or industries. For example, the risks caused by the company's workers' strike, loss of important sales contracts, failure of litigation, breach of contract, violation of law and other events. This kind of risk only affects one or a few enterprises or industries, and will not have a significant impact on the whole market. For example, some time ago, the stocks in the real estate industry were affected by the real estate recession, and the prices of such stocks fell, resulting in losses. This kind of risk can be dispersed or avoided by diversifying investment. That is, as the saying goes, "Don't put your eggs in one basket".

Three. What is the risk of force majeure?

As the name implies, the risk of force majeure is the risk caused by irresistible factors, such as war and natural disasters.

Four. What are the risks of open-end funds?

Open-end fund is a collective investment tool, which has * * * benefits and * * risks. Unlike bank deposits or national debt, it can't guarantee investors to get profits or minimum income. The risks of investing in open-end funds mainly include:

1。 Liquidity risk:

Any kind of investment tool has liquidity risk, that is, when investors need to sell the varieties they invest in, they will face the difficulty of realizing it and the risk of not being able to realize it at the right price. Compared with stocks and closed-end funds, the liquidity risk of open-end funds is different. Under normal circumstances, the fund manager must undertake the redemption obligation according to the net asset value of the fund. Therefore, there is no liquidity risk for investors, because they can't find buyers at the right price. However, in extreme cases, if the fund faces huge redemption or suspension of redemption, fund investors may not be able to redeem all the funds according to the net value of the fund unit on that day. Investors who choose to postpone redemption will bear the risk that the net value of fund shares will fall on the subsequent redemption date;

2。 Unknown risk of subscription and redemption price:

The subscription quantity (copies) and redemption amount of open-end funds are calculated according to the net value of fund shares on the trading day of the fund plus or minus related expenses. However, when investors purchase and redeem fund shares on the same day, the purchase quantity and redemption amount will be calculated based on the net value of fund shares announced on the next fund trading day (because the net value of fund shares on that day will not be calculated until the stock market closes). Therefore, investors cannot accurately predict the transaction price when they purchase and redeem, which is the unknown risk of the purchase and redemption price of open-end funds. Compared with short-term investors, this risk is much smaller for long-term investors;

3。 Fund investment risk:

The investment risks of open-end funds mainly include market risk and credit risk. The former refers to the risk that the stock market price of fund investment fluctuates due to various factors, which leads to the change of fund income level; The latter refers to the risk that the fund defaults in the transaction process or the bonds invested by the fund default and refuse to pay the due principal and interest, resulting in the loss of fund assets;

4。 Managing risks:

This refers to the risk brought to investors by the management level of all parties involved in fund operation;

5。 Operational or technical risks:

Refers to the risk of losses to investors when the business operations or technical systems of fund managers (fund management companies), fund custodians (usually commercial banks), registration agencies or consignment agencies (commercial banks, securities business departments) and other parties have problems;

6。 Force majeure risk:

This refers to the risks brought to fund investors when irresistible factors such as war and natural disasters occur.

The main way to avoid the investment risk of open-end funds is to choose fund products managed by fund management companies with good reputation, perfect management and sound internal control mechanism to invest, and consult and listen to the opinions of investment experts and consultants when necessary.