1. Because bond funds mainly invest in bonds, they have the risk attributes of bonds. If the bonds invested by bond funds default, the fund's net value will drop sharply, which is likely to exceed that of partial stock funds. The accumulated income of the fund has shrunk seriously, and even the accumulated income has lost. Bond funds will also be affected by the fluctuation of bond value, because the interest rate will change during the bond holding period. If the operation is improper, it will also cause losses. So bond funds make investors lose money. However, the main factor affecting the bond yield is inflation. If there is serious inflation in the market, the state usually raises the interest rate of bank deposits and loans. In this case, enterprises and residents will give up bond investment and turn to other investment projects, and financial institutions will put the realized bond funds into other markets, so the bond price will fall.

2. Any investment product in the investment market will have investment risk, which is just a question of risk. From the perspective of fund investment risk, money market fund has the smallest risk, stock fund has the highest risk and bond fund has the middle risk. However, due to different investment styles and strategies, the risks of the same kind of investment funds in the market will be different.

First, the characteristics of bond funds

1, low risk, low return

Because the investment object of bond funds-bonds have stable returns and low risks, bond funds have low risks, but at the same time, because bonds are fixed-income products, bond funds have low risks but low returns compared with stock funds.

2, the cost is low

Because bond investment management is not as complicated as stock investment management, the management fee of bond funds is relatively low.

3. Stable income

Investment bonds have regular interest returns and promise to repay the principal and interest at maturity, so the income of bond funds is relatively stable.

4. Pay attention to current income

Bond funds mainly pursue relatively fixed income in the current period, and lack appreciation potential compared with equity funds, so they are more suitable for investors who are unwilling to take too many risks and seek stable income in the current period.

Second, the advantages of bond funds

1, low risk

Bond funds can effectively reduce the risks that a single investor may face by pooling investors' funds to invest in different bonds.

2. Expert financial management

With the increasing diversification of bond varieties, ordinary investors should not only carefully study the issuer, but also judge the macroeconomic indicators such as interest rate trend, which is often beyond their ability, while investment bond funds can share the results of expert management.

3. Strong liquidity

If investors invest in illiquid bonds. Only when it is due can it be cashed, and indirectly investing in bonds through bond funds can obtain higher liquidity and can transfer or redeem the bond funds held at any time.

Third, the shortcomings of bond funds.

1, only in the case of long-term holding, can you get a relatively satisfactory return.

2. When the stock market skyrocketed, the income remained stable at the average level, which was lower than that of equity funds. When the bond market fluctuates, there is even the risk of loss.