What are the risks of investment funds?

1 Liquidity risk: Generally speaking, investment instruments face liquidity risk, that is, investors face the risk that they will be difficult to realize their assets when they need to realize them, and they cannot realize their assets at an appropriate price.

2 Institutional management risk: The investment funds are managed and operated by fund management institutions and fund managers, and there are certain risks in the operation.

3 Securities market risk: Policy changes will cause price fluctuations in the securities market, thus affecting the fund's income and price.

Generally speaking, fund investment is also risky. Moreover, due to the wide variety of fund investment products, different types of funds face different risks.

Source of risk

1, the origin of the word "danger", the most common saying is that fishermen who made a living by fishing in ancient times prayed every time before going out to sea, praying for the gods to bless their safe return. The main prayer content is to let the gods bless their safe return when going out to sea; In the long-term fishing practice, they deeply realized the unpredictable and uncertain danger brought by "wind". They realized that "wind" means "risk" in their life of fishing at sea, so the word "risk" came into being.

2. Another "origin theory" of the word "risk", which is said to have been demonstrated by many scholars, says that the word "risk" is imported. Some people think it comes from Arabic, others think it comes from Spanish or Latin, but the more authoritative statement comes from the word "risk" in Italy. In the early application, it is also understood as an objective danger, which is embodied in natural phenomena or events such as reefs and storms during navigation. Around the19th century, in the use of English, the word risk was often spelled in French, mainly used for insurance-related affairs.

3. The word "risk" in the modern sense has greatly surpassed the narrow sense of "encountering danger" but "the opportunity or danger of being destroyed or lost". It can be said that after more than 200 years of romance, the word "risk" has been conceptualized more and more, and gradually deepened with the complexity and profundity of human activities. It has been given a broader and deeper meaning from the fields of philosophy, economics, sociology, statistics and even culture and art, and is closely related to human beings.

4. In any case, the origin of the word risk is defined, but its basic core meaning is "uncertainty or loss of future results", and some people further define it as "the possibility that individuals and groups will be hurt in the future and their judgment and cognition of this possibility". If we take appropriate measures to prevent the probability of damage or loss, or make wise cognitive and rational judgments, and then take timely and effective preventive measures, then risks may bring opportunities, which further extends the meaning, not only to avoid risks, but also to bring different proportions of benefits. Sometimes, the greater the risk, the higher the return and the greater the opportunity.