1. Market risk: Market risk refers to the uncertainty of financial markets, including the fluctuation of market prices such as stocks, bonds and foreign exchange. The net value of the fund will be affected by market conditions. If the market trend is not good or the assets are not properly allocated, the net value of the fund may fall.
2. Credit risk: Credit risk refers to the risk of losses caused by the default of bond issuers or the decline of credit rating. When the Fund invests in bonds, there is a risk that the bond issuer will default. Therefore, if the credit status of the bond issuer held by the fund deteriorates, it may lead to a decline in the net value of the fund.
3. Liquidity risk: Liquidity risk refers to the difficulty of selling investment products in the market. If the fund invests in illiquid assets in the market, such as stocks or bonds, when the market needs to sell in large quantities, the fund may not get enough cash in a short time, thus affecting the transaction price and net value of the fund.
In addition to the above common risks, there may be other risks, such as policy risks and foreign exchange risks. The specific risks should be determined according to the specific situation of the fund. Investors should fully understand the risk characteristics of the fund before buying and invest according to their own risk tolerance.