The probability of a bond fund losing money forever is relatively small. Bond funds are funds that mainly invest in bonds. According to the regulations, the proportion of funds investing in bonds is not less than 80%. Bond funds have the characteristics of low risk and stable income, and generally do not always lose money.

The rise and fall of bond funds are determined by the bonds invested, and the bond income mainly includes the interest income of bonds and the spread income of bond transactions, while the interest income of bonds is fixed. Even if bonds fall, bonds also have interest income. This makes bond funds less risky.

Bonds are securities issued by issuers to raise funds. They pay a certain percentage of interest at the agreed time and repay the principal at maturity. Its essence is the proof of debt, which has legal effect. Issuers are usually governments, enterprises, banks, etc. Because government bonds are guaranteed by government taxes, the risks are minimal, but the benefits are minimal. Corporate bonds are the most risky and the returns are correspondingly high. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.

major feature

As the evidence of creditor's rights and debts, bonds, like other securities, are also a kind of virtual capital, not real capital. It is a certificate of real capital actually used in economic operation.

As an important means of financing and financial instruments, bonds have the following characteristics:

repayment

Repayment means that the bond has a prescribed repayment period, and the debtor must pay interest and repay the principal to the creditor on schedule.

liquidity

Liquidity means that bondholders can flexibly transfer bonds according to their own needs and actual market conditions, so as to recover the principal in advance and realize the investment income.

safe

Security means that the interests of bondholders are relatively stable and do not change with the changes of the issuer's operating income, and the principal can be recovered on schedule.

profitability

Profitability means that bonds can bring certain benefits to investors, that is, the return on bond investment. In actual economic activities, bond income can be expressed in three forms: first, investing in bonds can bring interest income to investors regularly or irregularly; Second, investors can use the changes in bond prices to buy and sell bonds and earn the difference; The third is the cash flow of investment bonds and the interest income of reinvestment.

Transaction procedure:

1. Investors entrust securities companies to buy and sell bonds, sign account opening contracts, fill in account opening related contents, and clarify the rights and obligations between brokers and customers.

2. Securities companies conduct bond trading business according to the entrustment conditions through their representatives or agents in the stock exchange.

3. Go through the formalities after the transaction. After the transaction, the broker shall fill in the transaction report on the day of the transaction and notify the principal (investor) to deliver the paid money or bonds to the entrusted broker on time.

4. The broker checks the transaction records and goes through the settlement and delivery procedures.