Face up to investment risks

1. Know your risk preference and tolerance. When investors choose fund products, they need to evaluate their risk preference and tolerance in order to find a suitable product type. Many novices and Xiao Bai often ignore this point. Most of them are ordinary working-class, and they may need to repay their mortgage and car loan every month. Those who are not married must save their wives first. All this money is not worth the loss. We need to accurately calculate the amount of idle funds every month, such as 5000. Then we can't put all 5000 into high-risk stock funds.

2. Face up to risks and understand benefits. Before investing in funds, we need to make clear the relationship between income and risk, because in any financial investment, it is meaningless to simply emphasize income. We can't understand the hidden risks behind investment through the rate of return. Public Offering of Fund is an investment tool with its own risks and benefits. Theoretically, the higher the income, the greater the risk behind it. Investors intuitively feel that the return is the net return rate of the fund, and the risk can be understood as the uncertainty of the future profit or loss of the fund.

Overall:

Equity funds are high-risk and high-return funds, which are suitable for investors with high risk appetite, strong risk tolerance and relatively long investment period.

The risk and income of bond funds are lower than those of equity funds, which is suitable for investors who pursue stable income;

Hybrid funds diversify into stocks and bonds, which are suitable for investors with moderate risk tolerance and expected returns;

Although the income level of money market funds is weaker than that of stocks, bonds and hybrid funds as a whole, it is suitable for investors who are unwilling to take risks and accept small income because of its liquidity and income stability.