The amount of funds is too small. For example, the capital pool is less than 100 million yuan, and the annual management fee is not enough to pay the fund manager. In the past, the China Securities Regulatory Commission had rigid regulations for liquidation of less than 10 million yuan, but this cannot guarantee that the fund company will be liquidated due to the amount of funds.

There is a risk of liquidation if it is too small, so it should be considered carefully.

Debt fund is the abbreviation of bond fund, also known as bond fund, which refers to a fund that specializes in investing in bonds.

Bonds are credit and debt certificates issued to investors when governments, financial institutions, industrial and commercial enterprises and other institutions directly borrow money from society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to agreed conditions.

According to the classification standards of fund categories by the relevant departments of securities supervision, bond funds are those with more than 80% of fund assets invested in bonds.

Bond funds can also invest a small portion of their funds in the stock market. In addition, investing in convertible bonds and new shares are also important channels for bond funds to obtain income.

In China, the investment objects of bond funds are mainly treasury bonds, financial bonds and corporate bonds.

Generally, bonds provide investors with fixed returns and principal repayment at maturity, with lower risks than stocks. Therefore, compared with stock funds, bond funds have the characteristics of stable returns and lower risks.

The two major factors that affect the performance of bond funds are interest rate risk, which is the sensitivity of the bonds invested to changes in interest rates (also known as duration), and credit risk.

When choosing a bond fund, be sure to understand its interest rate sensitivity and credit quality.

Only on this basis can you understand how high the risk of the fund is and whether it meets your investment needs.

Interest rate sensitivity, the rise and fall of bond prices is inversely related to the rise and fall of interest rates.

When interest rates rise, bond prices fall.

To know how bond prices change, and thus how sensitive a bond fund's net asset value is to changes in interest rates, duration can be used as an indicator.

Duration depends on three major factors of a bond: maturity, cash flow of principal and interest payments, and yield to maturity.

Duration is measured in years, but is a different concept than the maturity period of a bond.

This indicator tells you how much the fund you're looking at gains or loses due to changes in interest rates.

The longer the duration, the more sensitive a bond fund's net asset value is to changes in interest.

If the duration of a bond fund is 5 years, then if interest rates fall by 1 percentage point, the fund's net asset value will increase by approximately 5 percentage points; conversely, if interest rates rise by 1 percentage point, the fund's net asset value will suffer by 5 percentage points.

Loss.