Will the primary debt base lose money?
Bond funds are all medium-risk investment products, and the expected annualized expected return may be zero or negative during the investment process. Before buying a debt base, we should recognize the individual's risk-taking ability.
Reasons for loss of bond funds:
Bond funds do not hold bonds until maturity, but buy and sell bonds and make profits by predicting the future trend of bonds. Therefore, bond funds mainly expect annualized expected returns from capital gains rather than interest expectations, and there will be losses.
For example, the price of general bonds is opposite to the expected annualized interest rate, that is, the expected annualized interest rate rises and the bond price falls. If the fund manager fails to correctly judge the trend of the expected annualized interest rate in the future, the expected annualized interest rate will rise after buying a large number of bonds, resulting in a sharp drop in the net value of the fund.
Similarly, after buying corporate bonds, the company's credit status suddenly deteriorates and its rating is lowered, which will also lead to a sharp depreciation of the bonds in hand.
Skills of choosing bond funds:
1, profitability
First, look at the expected annualized rate of return of bond funds. Because the main risks of bond investment come from credit risk and expected annualized interest rate risk, and because China is in the stage of rapid economic development, the financial system is relatively healthy and the credit risk is low, the expected annualized interest rate risk can be reasonably avoided to some extent through the expected annualized interest rate management strategy, and the risk faced by bond funds investing in bonds is relatively low. In this case, the proportion of investment bond funds considering the expected annualized expected rate of return can be larger, and investors can try to choose the varieties with relatively high expected annualized expected rate of return in similar funds.
2. Performance stability
Among the investment targets of bonds, the expected annualized expected return risk characteristics of treasury bonds, financial bonds, corporate bonds, central bank bills, convertible bonds and other varieties are quite different, and different fund allocation ratios also lead to different fund fluctuations. In funds with good returns, investors should also choose varieties with high performance stability. From the comparison of monthly expected annualized expected return, the higher the ratio of monthly expected annualized expected return is higher than the average level of the same kind, the higher the performance stability of the fund, and the better the expected annualized expected return, which makes the performance of the selected fund in a higher position among similar funds of new and old investors.
3. Ability to resist risks
For secondary debt funds, they can participate in the investment in the secondary market. The volatility of the secondary market is much greater than that of the bond market. In addition to profitability and performance stability, we should also examine the ability to resist risks. Similar to stock funds and hybrid funds, only funds with a good balance between loss frequency and average loss range can have strong anti-risk ability and help investors achieve long-term and sustainable return on investment.