1. Is the bond fund safe?
Bond funds are relatively safe and less risky. However, small risk does not mean no risk. As long as there is investment and financial management, there will be certain risks. It's just that all kinds of investment and financial management methods have different degrees of risks. The risks of bond funds mainly come from the following aspects.
Decline in fund net worth
We all know that funds can only be long unilaterally, unlike futures, which can be long or short. So when the net value of the fund falls, that is, the price of the fund falls, then the expected return of our investors will be affected.
The decline in asset prices
As we all know, the price of the fund investment object determines the net value of the fund to a certain extent. If the price of the fund investment object falls, the corresponding fund net value will also fall. Bond funds mainly invest in bonds, such as government bonds, financial bonds, corporate bonds and some short-term financing bonds.
Bond prices are affected by market interest rates to some extent. When the market interest rate is high, the coupon rate of bonds is relatively low, so the investment value is not great. People don't want to hold bonds, they will invest their money in other financial instruments.
default risk
Bond fund is a combination of a series of assets, including not only national debt, but also some other bonds. We all know that the default risk of national debt is very low, but other bonds are not necessarily, especially corporate bonds. Once the company has poor performance or goes bankrupt, it is likely that it will not be able to repay its debts.
Second, how can the fund buy to make money?
There is no guarantee that buying a fund will make money. It can only be said that certain analysis and operation methods will increase the probability of making money. For example, when choosing a fund, we can reduce the investment risk by analyzing the Sharp ratio, Zhan Sen index and Treno index of the fund.
At the same time, we can also spread the investment risk through the fixed investment of the fund, reduce our investment cost and reduce the losses caused by fund fluctuation. All in all, any investment and financial management is risky. There is no guarantee that 100% will make money. It can only be said that the probability of making money has increased. Investment is risky, so be cautious when entering the market.