1. What is the expected return of bond funds related to
1. The expected return of bond interest is a fixed source of expected return of bonds, and the fund company can get a fixed expected return of bond interest after holding bonds at maturity. The coupon price of a single bond is generally fixed at 1 yuan, so the expected yield of bond interest mainly depends on the coupon rate of the bond.
2. In addition to the maturity of bonds, bonds can also circulate in the secondary market, and the market transaction price may be higher or lower than the par price. Fund managers can earn the difference by buying low and selling high with the help of the fluctuation of bond transaction price. Similarly, if fund companies buy high and sell low, they will suffer losses.
3. Leveraged investment fund companies can also use their bonds as collateral to obtain liquidity, so as to invest more bonds, that is, leveraged investment. The greater the leverage ratio, the greater the investment risk.
2. Under what circumstances will the bond fund lose money? 1. The bonds invested by the credit risk fund company may have the risk of default. Once the bonds default, the expected return of the fund will decrease. However, the investment targets of domestic bond funds are mainly treasury bonds, central bank bills and other categories. Most of these bonds are issued by the government or large financial institutions with high credibility, so the risk of bond default is not great.
2. Interest rate risk The change of bond price is closely related to the market interest rate, so interest rate fluctuation is the main risk factor of bond funds. When the market interest rate rises, the bond price will fall. The above contents about what the expected return of bond funds is related to, I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.