Group 1 - The core concept emphasizes the importance of foundational knowledge in investing and selecting the right funds, suggesting that a solid understanding of fund basics is essential for successful investment [2] Group 2 - Fund risk levels are determined through standardized evaluations by institutions, which assign a "risk label" to products. The risk levels range from R1 (low risk) to R5 (high risk) according to the guidelines [3]

Core Viewpoint - The article discusses the characteristics and risks associated with R1-rated funds, emphasizing that "low risk" does not equate to "zero risk" and provides guidance for conservative investors on selecting suitable low-risk funds [1]. Fund Risk Level System - The fund risk level system ranges from R1 to R5, indicating increasing levels of risk and corresponding investor risk tolerance [2]. - R1 funds are considered "quasi-savings" but still carry three main potential risks: yield fluctuation risk, liquidity risk, and minimal credit risk [4][5][6]. R1 Fund Characteristics - R1 funds are suitable for cautious investors seeking capital safety and stable returns, with maximum drawdown typically controlled within 0.5% [7]. - The average annualized return for R1 funds over the past decade is 2.4%, with the maximum single-day decline not exceeding 0.05% [6]. Types of Low-Risk Funds - Money Market Funds: Known for liquidity, suitable for cash management [9]. - Interbank Certificate of Deposit Index Funds: Enhanced yield version of money market funds, with higher yield volatility [9]. - Pure Bond Funds: Core for stable returns, requiring differentiation between short and long-term [9]. Investment Characteristics - Money Market Funds: Seven-day annualized yield ranges from 1.8% to 2.8% [10]. - Interbank Certificate of Deposit Index Funds: Annualized yield over the past three years is between 2.8% and 3.5%, with volatility 1.5 times that of money market funds [10]. - Pure Bond Funds: Short-term pure bond funds yield between 2.5% and 3.2%, while long-term pure bond funds yield between 3.5% and 4.5% [10]. Investment Strategy for Conservative Investors - For conservative investors, a combination of money market funds for cash management, interbank certificate of deposit funds for enhanced yield, and pure bond funds for core returns can achieve a stable annualized return of 2.8% to 4% [13].

Core Viewpoint - The article emphasizes the importance of "suitability" management in fund investment, which involves matching appropriate fund products or services to suitable investors based on their risk tolerance, investment goals, and experience [2][3]. Investor Suitability - Accurate assessment of investors' risk tolerance, investment goals, and experience is crucial for effective fund product recommendations [2][3]. - Different investors have varying investment capabilities and goals, indicating that no single fund product is suitable for everyone [3]. Fund Product Characteristics - Fund products are categorized into four main types based on expected risk, ranked from high to low: equity funds, mixed funds, bond funds, and money market funds [13]. - Fund companies classify products into five risk levels (R1 to R5) to help investors understand the risk attributes of each product [13][14]. Risk Assessment - Investors are typically required to undergo a risk tolerance assessment before purchasing funds, which involves answering a questionnaire about their financial situation, investment experience, and goals [15][16]. - The results of the assessment categorize investors into different risk levels, guiding them to select appropriate risk-level products [16]. Dynamic Nature of Risk Tolerance - Investors' risk tolerance can change over time due to factors such as age, income, and accumulated investment knowledge, necessitating periodic reassessments by sales institutions [17].