Pure debt fund is an investment bond fund, with relatively small risk and relatively stable income. However, under some special circumstances, pure debt funds may have been falling. So what is the relationship between the rise and fall of pure debt funds? The following small series brings pure debt funds related to the rise and fall of the stock market. I hope you like it.

What is the relationship between the rise and fall of pure debt funds?

The rise and fall of pure debt funds is related to the bond price, which will rise and fall according to the supply and demand relationship between the two parties. Simply put, supply and demand determine the transaction price. If the amount of money to buy bonds exceeds the amount of money to sell bonds, and everyone wants to buy bonds, there will be a situation in which demand exceeds supply and bond prices will rise.

On the contrary, if the amount of money to buy bonds does not exceed the amount of money to sell bonds, and everyone wants to sell bonds, there will be oversupply and bond prices will fall.

The other is interest rate risk, because bond prices are related to market interest rates. Generally, when bonds are issued, the interest rate will be agreed, but because the market will change during the bond's existence, if the interest rate of new bonds rises, the old bonds will be abandoned, so the existing bonds will be at risk of falling.

Is there a relationship between pure debt funds and stock market ups and downs?

Pure debt funds have little to do with the rise and fall of the stock market. Pure debt fund is a kind of bond fund, which mainly invests in the bond market, so it is greatly influenced by the bond market. The bond market will rise when it is better, and so will pure debt funds. Similarly, we can know that the bond market will fall if it is not good, and so will pure debt funds.

However, if investors lose money in the stock market when the stock market is not good, they will redeem the stop loss, so they will give priority to low-risk pure debt funds. If a large amount of funds enter the bond market, it will promote the rise of the bond market and the rise of pure debt funds. On the contrary, if the stock market is more profitable and the market is better, a large number of investors will take out bond funds to invest in the stock market, then the bond market will fall and pure debt funds will also fall.

However, because pure debt funds are less risky financial management and do not directly invest in the stock market, the fluctuation of funds is relatively small, and generally there will be no big losses. However, if there is a loss, it is necessary to stop the loss in time.

How to increase stock positions and dilute costs

First, the pyramid position management method. Investors continue to be optimistic about a stock and start buying a lot of money. In the process of stock rising, they gradually buy, and the proportion of buying gradually becomes smaller. In addition, investors continue to be optimistic about a stock, and gradually increase their positions when the stock price falls to reduce costs. The proportion of each increase is fixed.

Second, the funnel position management method. Investors continue to be bullish on a stock. When the stock price falls, the market will gradually increase its positions to reduce costs, and the proportion of each increase will become larger and larger. It should be noted that no matter which way investors increase their positions, they need to comprehensively consider their investment preferences and the amount of funds.