Pure bond funds are not capital preservation products, and there is the possibility of principal loss, but the probability is small. The profit of bond funds is determined by the bonds invested, and the income of bonds is mainly the interest income of bonds and the spread income of bond transactions.

The net value of bond funds is inversely proportional to the bond interest rate. When the bond interest rate falls, the net value of the bond fund will rise, and when the bond interest rate rises, the net value of the bond fund will fall. When the bond market has accumulated a large increase in the early stage, if it is profitable, it will sell its assets, which will also lead to a decline in bond prices.