The rise and fall of bond funds is inversely proportional to the market interest rate. When the market interest rate rises, its net value may fall. When the market interest rate falls, its net value may rise.
Because more than 80% of the assets of bond funds are invested in bonds and a small part is invested in the stock market, the rise and fall of bond funds will also be affected by stocks and bonds to some extent.
When the stocks invested by bond funds fall due to bad market conditions or other bad news, it will also lead to the decline of bond funds to a certain extent; On the contrary, because of some good news, the stock price rose sharply, which indirectly led to the rise of bond funds.
Because its main funds are invested in bonds, the yield of bonds will also affect the rise and fall of bond funds to some extent.
Pure debt fund: pure debt base only invests in bonds, so the rise and fall of this debt base will only be affected by the rise and fall of the bonds invested. This kind of bonds will be affected by two aspects, on the one hand, the interest income of bonds due, on the other hand, the fluctuation of bond market, and many other factors, such as the tightness of monetary policy, the adjustment of interest rate or deposit reserve ratio, and the expected income. As long as the market fluctuates, there will be fund ups and downs, and there will be low buying and high selling.
Primary debt base and secondary debt base: most of the funds of these two types of bond funds are invested in bonds, accounting for more than 80%, of which the investment of stock funds accounts for 0-20%, generally around 10%.
Compared with pure debt base, this debt base will have one more influencing factor, that is, the fluctuation of stocks held or invested. Although the shareholding ratio is small, the volatility of the stock market is much greater than that of the bond market, which can completely affect the entire debt base. In other words, this debt-based risk of investing in stocks is slightly higher, and the stock market will have an impact on it.
Convertible bond fund: it is mainly used to invest in convertible bonds, which are issued by listed companies and can be converted into shares of listed companies in some cases, so the debt base of convertible bonds is greatly influenced by the stock market. This kind of debt base has a debt holding and shareholding ratio of about 50%, which is a medium-risk fund.