Interest rate risk: If the national monetary policy is tightened, the interest rate of deposit reserve is raised continuously, then the bond market will be suppressed to some extent, thus affecting the trend of bond funds.
Credit risk: that is, if the bond issuer fails to pay the interest rate of the bond, the fund will also lose money.
In addition, bond funds may also have liquidity risk, that is, when the central bank's monetary policy is tightened, the market liquidity is temporarily tight and bonds cannot be exchanged, which will also make bond funds have certain risks.
Although bond funds have the above risks, they generally do not appear. Because bonds are based on the issuer's credit, if they are not paid, no investors will believe them in the future, so this is also the reason why the bond fund's income is relatively stable.
The risk of bond funds is a little higher than that of money funds, but generally speaking, the risk is small and the income is stable, which is very suitable for conservative investors.