Pure debt funds have losses and explosions. The main reason is that the change of market environment leads to the increase of interest rate fluctuation in the bond market, and the risk also increases. But overall, the performance of pure debt funds is still good, but the risks have begun to emerge.
Secondly, the poor performance of pure debt funds is mainly due to the recent increase in market interest rates, resulting in a decline in the yield of their investment bonds. However, investors need to understand that the income of pure debt funds mainly comes from the interest income of bonds invested by funds, not from the rise and fall of bond prices, so short-term interest rate fluctuations should not affect investors' confidence too much.
In addition, in the long run, the security of pure debt funds is still very high. On the one hand, pure debt funds invest in high-quality bonds with high credit rating, and investors' principal security is guaranteed. On the other hand, pure debt funds can appropriately diversify their investments to further reduce risks.
To sum up, pure debt funds have certain risks, but the security is still quite high in the long run. Investors should invest rationally and don't pursue short-term profits excessively. Holding pure debt funds for a long time can effectively reduce risks.