One: Will pure bond funds lose money?
Theoretically, pure debt funds do not participate in investing in new shares, convertible bonds and stocks, but only pay attention to national debt and high-grade corporate credit bonds, so the margin of safety is very high. Although the income is low, the probability of principal loss is extremely low! However, in theory, after all, it is only in theory. If there is a global economic crisis (stock market crash) or the central bank is forced by monetary pressure to substantially increase the deposit interest rate (several times), then the pure debt fund will also lose its principal, but the loss will be less! You can refer to the data in 2007, 20 1 1!
It should not lose money, and the longer it is held, the lower the probability of loss, but the yield of pure debt funds is not very high.
The present China market is absolutely impossible. If the position of stock index futures or other hedging instruments exceeds the loss of spot financial instruments, it is possible, but this is also theoretical. Financial institutions will not bear such exposure risks, so the conclusion is that they will not at any time.
Two: Why do bond funds lose money?
If you don't want to take too much risk, you can buy some less risky funds, such as bond funds. However, bond funds are not without risks. Even short-term debt funds with the lowest risk may fall, and some bond funds may even fall sharply. Then, if the bond fund falls sharply, should it be redeemed?
Why do bond funds also fall?
The decline of bond funds is mainly due to the decline of bond prices.
For bond funds, the main investment target is bonds, which may be government bonds, financial bonds, corporate bonds or other bonds.
Since bonds will also be listed and traded, as long as they are listed and traded, the price of bonds will fluctuate. Most of the assets of bond funds are bonds. When the bond price falls, it means that the asset value of the fund decreases, and the net value of the fund will also fall accordingly.
There are many reasons why bond prices will fall. For example, if the central bank raises interest rates, the market interest rate will rise, the bond interest rate will also rise, and the corresponding bond price will fall.
Of course, although bond funds will also fall, in general, they will not fall sharply, because bond prices rarely fall sharply, but sometimes bond funds fall sharply, such as bonds with heavy positions in bond funds default. At this time, bonds will be sold, prices will fall sharply, and bond funds may also fall sharply.
In addition, when convertible bond funds plummet in the stock market, they may also plummet. Then, if the bond fund falls sharply, do you want to redeem it?
Should bond funds be redeemed when they plummet?
When the fund falls sharply, many people's first thought may be to redeem the stop loss immediately. Is this right?
First of all, if the pure debt fund falls sharply, there is no need to redeem the bond fund.
Pure debt funds rarely fall sharply. If the pure debt fund falls sharply, there is a high probability of any black swan event, such as bond default. However, bond default is a small probability event after all. If it does happen, I believe the fund manager will respond quickly and clean up the problem bonds.
At this time, although the loss is irreversible, as long as the uneasy factors can be removed, we can still get back on track. As long as the fund can get back on track, there is still hope to earn back the money it lost before. But if the fund is redeemed at this time, the loss of investment becomes the actual loss.
Of course, if a pure debt fund is badly weakened after the plunge, and even faces the risk of liquidation, even if it does not plunge, the fund's income will not work, so why not redeem it and keep it?
Secondly, if the mixed debt-based and convertible bond funds fall sharply, it may be possible to consider redeeming the funds first in the short term. If convertible bond funds and mixed debt bases fall sharply, it is likely to be a signal of market changes. In particular, bond funds have fallen from a high level. At this time, redemption may be considered in the short term to avoid the risk of further decline.
In the medium and long term, as long as there is no problem with the fund itself, there will be an upward opportunity sooner or later after the plunge, and there is no need to redeem the fund. Redemption is only needed when the fund itself has problems, such as poor performance of the fund or possible liquidation at any time.
In short, whether the bond fund should be redeemed after the plunge depends on the score.
Three: What is the probability of a bond fund losing money?
The probability of a bond fund losing money forever is relatively small. Bond funds are funds that mainly invest in bonds. According to the regulations, the proportion of funds investing in bonds is not less than 80%. Bond funds have the characteristics of low risk and stable income, and generally do not always lose money.
The rise and fall of bond funds are determined by the bonds invested, and the bond income mainly includes the interest income of bonds and the spread income of bond transactions, while the interest income of bonds is fixed. Even if bonds fall, bonds also have interest income. This makes bond funds less risky.
Bonds are securities issued by issuers to raise funds. They pay a certain percentage of interest at the agreed time and repay the principal at maturity. Its essence is the proof of debt, which has legal effect. Issuers are usually governments, enterprises, banks, etc. Because government bonds are guaranteed by government taxes, the risks are minimal, but the benefits are minimal. Corporate bonds are the most risky and the returns are correspondingly high. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.
As the evidence of creditor's rights and debts, bonds, like other securities, are also a kind of virtual capital, not real capital. It is a certificate of real capital actually used in economic operation.
As an important means of financing and financial instruments, bonds have the following characteristics:
Repayment means that the bond has a prescribed repayment period, and the debtor must pay interest and repay the principal to the creditor on schedule.
Liquidity means that bondholders can flexibly transfer bonds according to their own needs and actual market conditions, so as to recover the principal in advance and realize the investment income.
Security means that the interests of bondholders are relatively stable and do not change with the changes of the issuer's operating income, and the principal can be recovered on schedule.
Profitability means that bonds can bring certain benefits to investors, that is, the return on bond investment. In actual economic activities, bond income can be expressed in three forms: first, investing in bonds can bring interest income to investors regularly or irregularly; Second, investors can use the changes in bond prices to buy and sell bonds and earn the difference; The third is the cash flow of investment bonds and the interest income of reinvestment.
1. Investors entrust securities companies to buy and sell bonds, sign account opening contracts, fill in account opening related contents, and clarify the rights and obligations between brokers and customers.
2. Securities companies conduct bond trading business according to the entrustment conditions through their representatives or agents in the stock exchange.
3. Go through the formalities after the transaction. After the transaction, the broker shall fill in the transaction report on the day of the transaction and notify the principal (investor) to deliver the paid money or bonds to the entrusted broker on time.
4. The broker checks the transaction records and goes through the settlement and delivery procedures.