Bond funds invest more than 80% of fund assets in bonds, which means they are not fully invested in the bond market, so their return opportunities will be higher than those of ordinary bonds, and they will also bring some risks.

And different funds have different investment scopes, which can generally be divided into pure debt, primary debt and secondary debt.

Are there risks in buying bond funds?

The risk and return of bond funds are between money funds and stock funds.

In the investment market, in addition to the risks of the bonds themselves, there are also the following risks.

1. Credit risk: including the credit risk of the investment target and the credit risk of the fund manager.

2. Market risk: Bond prices are affected by market changes, which will affect the short-term price of investment bonds.

3. Interest rate risk: Fluctuations in market interest rates will lead to changes in securities market prices and yields.

This also includes a policy risk, that is, the central bank raises or lowers interest rates, or other related policies.