Relatively speaking, the size of bond funds is the most appropriate in the middle. Bond trading is not frequent, and there will be hidden losses if the scale is too small. Just like in the inter-bank bond market, the yield of buying and selling is accurate to four decimal places, and a small difference may lead to millions of dollars in losses.

What are the risks of bond funds?

1. Interest rate risk. When the interest rate rises, it is followed by a decline in bond prices. Therefore, once the interest rate changes, the income of bond funds will inevitably change with the change of interest rate.

2. Credit risk. Bond funds are mainly aimed at government bonds, financial bonds and corporate bonds. National debt is basically risk-free; Financial bonds are divided into bonds issued by banks and non-bank financial institutions, and the latter has a relatively high risk of default. If the turnover of the enterprise is poor, then the debt of the enterprise will also face the possibility of loss.