Many students who hold bond funds should find that the bond funds they bought fell a lot in 2020. Some students came to ask, this bond fund has fallen sharply. Is there a problem with the fundamentals of the fund? Do you want to sell it?

So why is this? In fact, there are two main factors that affect the income of bond funds. One is the market interest rate. The return of bond funds is usually contrary to the market interest rate. Interest rates rise, bond fund returns fall, market interest rates fall, and bond fund returns rise.

The second impact on the income of bond funds is bond default. If some bonds in the bond market default, the bond funds that unfortunately hold the defaulted bonds will be trampled directly, and the net value of the funds will definitely decrease. In addition, if the defaulting enterprise has great influence, it will hit the confidence of the whole bond market and lead to a decline in the bond market.

Then let's see why our bond fund has fallen a lot recently. First look at the market interest rate. You can directly look at the yield of 10-year government bonds. As interest rates rise, bond prices naturally begin to fall, which is also the main reason for the poor performance of bond funds.

In addition, there have been some influential default events in the bond market. First of all, the first one is Brilliance Group, which is BMW Brilliance. It is surprising that this state-owned enterprise should default on its bonds. There are also contractors' banks, and billions of bonds have not been returned. These events have hit the recent bond market, leading to a large decline in bond funds.

In addition to pure debt funds, there are secondary debt bases. Such funds not only hold bonds, but also hold some stocks. Of course, the holding ratio of stocks usually does not exceed 20%, so this bond fund can make money even if the bond market falls, but if the stocks it holds are profitable. You can have a look if you don't believe me. The bond funds that have made money recently are basically such bond funds.

In addition, some students will think that the bond market has fallen a lot recently and there has been a black swan incident. Then can we go to buy a bargain?

Actually, it's not necessary The bond market did not perform well and fell for half a year. I went to see the pure debt fund I held, but it was only a loss of 2%. Compared with equity funds, this is not as good as the one-day decline of equity funds. And why should we buy a bond fund? In fact, it is to avoid violent fluctuations in the stock market, not to create fluctuations in the bond market. The bond market fluctuates little, that is, there are only a few points. If you want to copy the bottom, it is also a stock asset. What is the significance of bargain-hunting bonds?

So personally, I think it's good for us to keep it. If there are other funds, it is also possible to allocate bonds. Because the bond market is cyclical, it is impossible to keep falling, and there will definitely be a rise. We invest in bond funds mainly to pursue stability and help us balance the risks in the stock market, which is completely sufficient.