1, Monetary Fund
Money fund is a low-risk product, and it is also the lowest risk among all kinds of fund products. Even so, there is no money fund that stipulates capital preservation in the contract, so in theory, money funds will also lose money.
Money funds mainly invest in short-term monetary instruments. In case of falling bond prices, early redemption of bonds, reduction of bank deposit certificates, etc. It is also possible that the expected return of the fund will fall in the short term, and there have been examples of short-term losses of the cargo base in history.
But in the long run, the expected return of the money fund is still very stable, and the probability of principal loss is extremely small.
2. Bond funds
The investment scope of bond funds is wider than that of money funds. A small amount of assets are invested in high-risk products such as stocks, and the average remaining period of investment varieties is longer, so the risk of bond funds is higher than that of money funds.
However, most of the assets of bond funds are still invested in bonds, and bonds with high credit ratings are the main ones, so the interest rate risk is low, so the probability of loss of bond funds' principal is also low.
If the fund holds bonds and encounters problems such as default or falling bond prices, it does not rule out the loss of the bond fund.
Bond funds can also be subdivided into many categories, among which short-term bond funds have relatively low risks and are called enhanced money funds.
3. Equity funds
Most equity funds will invest in stocks. If the stock held by the fund is poorly managed, or the fund manager makes mistakes, then the probability of loss of the stock fund is very high.
In addition, fund liquidation is also one of the reasons for fund losses. The above content about the loss of the foundation, I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.