Generally speaking, interest rate refers to the interest on bank deposits. Bank interest rates rose, a large amount of funds flowed to savings deposits, and bond prices fell; On the other hand, the decline in bank interest rates, the outflow of a large amount of funds from savings deposits and the rise in bond prices are substantial benefits to bond funds. It is conducive to the stable development of the bond market, promoting the improvement of the net value of bond funds and stabilizing the investment income of investors. Therefore, bond funds and money market funds should become the focus of investors' attention and be reflected in the allocation of portfolio.

Although interest rate cuts have a positive effect on bond funds and money market funds, investors should also have positive financial management ideas and follow up and adjust their investment ideas in time. When looking at the income of bond funds and money market funds, we should objectively optimize the portfolio structure and formulate reasonable income expectations. You can't blindly amplify its income expectations or make concentrated investments just because the market is favorable.

Finally, pay attention to the impact of interest rate changes on existing bond funds. It can be said that the analysis of bonds mainly focuses on the duration and credit quality of bond funds. Duration refers to the weighted maturity date of bonds. From the relationship between duration and interest rate changes, if the duration of a bond fund is five years, the net value of the bond fund will increase by about 5% when the market interest rate drops 1%. This also leads to different net effects of bond funds with different holding periods, and investors can make optimization analysis.