Non systematic risk. It refers to the risks caused by specific events of individual companies, such as strike, failure of new product development, failure to win important contracts, failure of litigation, etc. This kind of event occurs randomly, so it can be dispersed through diversified investment, that is, the adverse events occurred in one company can be offset by the favorable events of other companies. In common words, "the risk of eggs in different baskets is much smaller than that in one basket". Therefore, the non systematic risk is also called the risk of diversification or company specific risk 。
At present, before the turning point of the epidemic situation, the wide fluctuation of the capital market will continue. Investors should adopt more prudent investment strategies, increase the allocation proportion of cash management products and prudently choose fixed income products.
Cash management products: bond repo, monetary fund and so on. Due to the loose monetary policy, these income categories are also falling. The central price of 204007 seven day repo rate falls below 2%.