When it comes to investment and financial management, most users will think of bonds, funds and stocks. Indeed, these products are often seen in the investment market and are more suitable for most users. Users hold bonds, funds and stocks for different times, so the amount of income they can get is also different. So, will short-term debt bonds lose their principal?

Will short-term debt bonds lose money?

1 If investors buy short-term bond funds, they may lose money by withdrawing them before maturity. Buying a bond fund is equivalent to buying a basket of bonds, so the probability of loss becomes smaller.

Under normal circumstances, if you buy short-term treasury bonds, the probability of losing money is very small, because treasury bonds are one of the safer bonds.

If you buy corporate bonds or financial bonds issued by an enterprise, the issuer fails to fulfill the agreement on time after the issue expires, it will lose money.

Income and risk are relative. Compared with the money fund, the risk is relatively high, so it is better for users to choose short-term bonds. The yield of short-term debt is relatively stable, and long-term investment may be a better strategy.

As an ordinary investor, the first thing to pay attention to is risk. Secondly, we should pay attention to the rate problem to avoid frequent buying and selling in the short term. Finally, we should pay attention to our holding time and set up a profit-taking point to avoid big losses.