When buying a fund, choose a product and enter the amount you want to buy, but many people are prompted by the system in the process of buying a fund: the risk level does not match. What's going on here? See what the professionals say.

What does it mean to buy a fund to prompt that the risk level does not match?

It means that the risk of the fund exceeds the risk tolerance of investors. When purchasing funds or stocks, it is necessary to conduct risk assessment, and determine the types of wealth management products that can be purchased according to their risk assessment.

According to the requirements of regulatory authorities such as appropriateness, if the risk level is lower than that required by this kind of products, the system will temporarily restrict the purchase of corresponding products to avoid unexpected risks caused by the inconsistency between products and investment objectives.

The system prompts to buy a fund, prompting that the risk level does not match. It is suggested that you can carefully re-evaluate the risk level and other factors and decide whether to trade related products according to your own situation. If the personal risk tolerance is re-evaluated to match the risk level of the product, the corresponding product can be traded on the next trading day.

Fund risk level:

According to the order from low to high, it is divided into five risk levels: R 1 (low risk), R2 (medium and low risk), R3 (medium risk), R4 (medium and high risk) and R5 (high risk).

Finally, a word of caution: funds are effective tools for long-term financial management, but they are not savings deposits. Buying a fund has the risk of losing the principal. Please choose the appropriate fund products according to your risk tolerance level.