This is because:
1. In addition to stocks, funds often hold investment tools such as bonds and a certain amount of cash;
2. The fund holds a large number of stocks, which can spread the risk of individual stocks.
Extended data
Fund products have five risk levels, namely: cautious products (R 1), stable products (R2), balanced products (R3), enterprising products (R4) and radical products (R5).
Grading R 1 and R2:R 1 and R2 have basically the same investment scope. r 1 is generally a product with guaranteed capital and guaranteed income, while R2 is generally a floating income product, and will not promise to protect capital. The investment direction of these two grades is basically the same, and they are generally low-risk products such as bank loans, enterprises or national debt.
R3 level: R3 products generally combine some investment products of R 1 and R2 with some volatile financial products such as stocks, commodities and foreign exchange for asset allocation, and the proportion of high-risk products shall not exceed 30%. This level does not guarantee the capital, and the proportion of guaranteed capital of structured products is generally above 90%, and the income fluctuates to some extent.
R4: R4 products are generally invested in highly volatile financial products such as stocks, gold and foreign exchange, and the proportion can exceed 30%. The principal is not guaranteed, the risk and return are high, and the income fluctuates greatly. Due to various factors, there is a great possibility of loss.
R5: The products at this level can be fully invested in high-risk financial products such as stocks, foreign exchange and gold. , and can be invested through derivatives and leverage amplification. The principal risk is extremely high, and the income fluctuation and expected income are also very high.