In addition to the capital preservation funds which can guarantee the safety of principal, funds usually have no guaranteed returns. Their net value fluctuates with the market and shows positive or negative performance returns. Fund returns are not always smooth sailing; investors who have experienced the bear market before 2006 naturally have a deep understanding. And only new fund investors who have experienced the severe test of a sharp decline in net value will truly feel the pain. Before choosing a fund, investors need not only to have a correct risk positioning for each type of fund but also to assess their own risk tolerance, so as to choose the appropriate investment products for themselves.