What are the risks of investing in funds? How much do you know about these things?

In normal times, many people will use their spare money to invest in financial management, so that their spare money can obtain better returns. So when investing in financial management, funds have become the first choice for many people. So what are the risks of investing in funds? Have you noticed it in your daily life? Let me tell you about it below.

When investing in funds, you will face many risks, such as interest rate risk. When investing in funds, financial market interest rates fluctuate, which will lead to changes in fund returns. When a fund invests in bonds and stocks, its level of income is affected by changes in interest rates.

You will also face liquidity risks when investing in funds. When making large-amount fund redemptions, fund investors may not be able to redeem when the fund's net value is the highest. If you make a delayed redemption, you will bear the risk of a decline in the net asset value of the unit fund on the subsequent redemption date.

There is also the risk of inflation when investing in funds. If inflation occurs after investing in a fund, the income from investing in the fund may be offset by inflation, thus affecting the maintenance and appreciation of the fund assets. , at this time, users need to have certain predictions about the economic trend when investing.

There are institutional operational risks when investing in funds. If the fund is poorly managed after investing in the fund, the net value of the fund may fall, causing investors to suffer losses. There is also force majeure risk when investing in funds, which refers to the risks brought to fund investors when force majeure such as wars and natural disasters occur.

Finally, there is policy risk when investing in funds. This risk mainly refers to significant changes in national macro policies such as fiscal policy, monetary policy, industrial policy, and regional development policy, resulting in significant fluctuations in the fund market. , thus affecting fund returns.

Although funds will face certain risks when investing, they must learn to avoid them during the investment process. For example, when choosing, you can look for funds that have been established for a long time, and ensure that you choose fund products launched by large companies. , so that you can avoid some risks when investing.