How do QDII funds control risks in overseas investment?

Exchange rate risk control. QDII funds invest in foreign currencies such as US dollars. The exchange rate changes of USD and other foreign currencies relative to RMB will affect the value of RMB-denominated fund assets, thus leading to potential risks of fund assets. In addition, when buying QDII, investors need to see clearly whether the target market or industry has long-term potential and grasp the investment theme of the product. Only when the investment theme is clear, the investment prospect and overall income expectation of the product can be easily understood by investors. Strictly control the admission time. In this regard, a very important experience is "don't enter when the market is irrational." In other words, don't enter at the high point of the market, so as not to take greater risks. QDII funds are risky and volatile, so investors must have a good attitude to bear them. In terms of returns, investors should pay attention to long-term returns and need to give institutions some time to strive for high returns. While attracting many investors to pay attention to overseas markets, it also triggered investors' concerns about the exchange rate trend.