There is a pure bond fund in the bond fund, and its investment object 100% is bonds, which is the least investment risk among bond funds. As we all know, the fund is not a product with guaranteed capital and interest, so although the risk is small, there is also the possibility of loss. So is there a loss of principal when buying a pure debt fund?

Is the pure debt foundation losing money?

Yes, because pure debt funds are not products with guaranteed capital and interest, there is a certain possibility of principal loss, but this possibility is very small and can be basically ignored. The investment risk of pure debt fund is very important between money fund and bond fund. Whether it is a stable investor or a capital preservation investor, pure debt fund is a good choice. As long as you hold it for a long time and invest enough principal, you can get good returns.

In addition to their own investment risks, pure bond funds may also face credit risks. Credit risks refer to the bankruptcy or capital shortage of companies, but there will be no great losses, and this situation is very, very small. In addition, there are risks of interest rate fluctuations and bond price fluctuations.

When investors choose a pure bond fund to invest, they can make a comprehensive analysis from the aspects of fund manager, fund net value, fund scale, fund valuation, fund morning star level, historical performance, etc., and the fund with high fund yield will get higher income. Although the historical performance of the fund cannot represent the future performance, it can also be used as a good reference index.