If you want to gain income quickly, entering the investment market is a good way. Bond funds are an indispensable part of asset allocation because of their relatively low risk and relatively stable income fluctuation. Bond funds mainly invest in bonds, and it is stipulated that more than 80% of fund assets are invested in bonds, and a small amount of funds are invested in stock markets, convertible bonds and new shares.

Is the bond fund losing money?

Bond funds are losing money. Bond funds are not guaranteed, and short-term losses of bond funds are also common. When investors enter the market, they should be clear about their goals, whether to pursue low-risk stable returns or relatively high returns. Then according to their own risk tolerance, choose the corresponding debt-based type. Any kind of investment in the investment market will have investment risks, which is only a matter of risk.

Bond funds mainly invest in bonds and have the risk attributes of bonds. Investors with relatively low risk tolerance can choose primary debt-based or pure debt funds, while investors with strong risk tolerance can choose secondary bond funds and convertible bonds funds if they want to obtain relatively high returns. Bond funds will also be affected by the fluctuation of bond value caused by interest rate changes during the bond holding period, and improper operation will also cause losses.

Generally speaking, bond funds make investors lose money. From the perspective of fund investment risk, the money market fund has the smallest risk and the stock fund has the highest risk. Once the bonds invested by bond funds default, the net value of the fund will drop sharply, which is likely to exceed that of partial stock funds. If there is serious inflation in the market, financial institutions will invest the funds realized from bonds in other markets, and then the bond price will fall.