Bond funds refer to funds in which more than 80% of fund assets are invested in bonds. Although bond funds are an investment type with stable returns and low risks, as long as there are risks, they will inevitably encounter fluctuations.

Today, we will talk about the volatility of bond funds. Will there be a sharp rise after a sharp fall?

First of all, we need to understand that bond funds are divided into four types according to the types of bonds they invest in: 1. Mainly invest in bonds issued by the government such as treasury bills, government bond funds; 2. Mainly invest in public bonds issued by local governments

, municipal bond funds; 3. Mainly invests in bonds issued by various companies, corporate bond funds; 4. Mainly invests in various bonds issued in the international market, international bond funds.

Different bond funds face different risks, so the reasons for their value fluctuations are also different.

Treasury bonds and policy financial bonds only have interest rate risk, while corporate bonds and enterprise bonds not only have interest rate risk but also default risk. International bonds also face political risk and exchange rate risk.

Whether bond funds will rise sharply after a sharp fall mainly depends on two aspects.

First, consider it from the perspective of risk; second, consider it from the deviation between price and value.

Take the government bond fund as an example for a simple analysis, because the return on the bond is fixed. That is to say, if you hold the bond to maturity, you will get a fixed return, and interest rates will usually not fluctuate greatly.

, the impact on income is extremely limited, and the default risk of government bonds can basically be ignored. Therefore, the sharp decline in bond funds may be due to a black swan event. However, the actual value of bonds has not decreased, but market sentiment has caused price deviations. In the long run,

It seems that bond prices are more likely to return to the bond's value level and fluctuate around it.

Of course, the asset allocation of different bond funds is different, and the corresponding risk types and risks are also different, so this also requires investors to think more about it. What is provided here is mainly an analysis idea.

There are few certainties in investing. The only certain thing is that investment must be risky.

Therefore, investment is risky and you must be cautious when entering the market.