Bond funds are investment products with relatively stable risks and expected returns. In particular, short-term bond funds are very popular in the market. Their average expected return rate is even stronger than that of money funds. They occupy a position in the investment market. Then bond fund trading

What are the techniques?

1. Clarify investment risks. Although the investment risks of bond funds are relatively moderate, there are many categories of bond funds, and the risks of different bond funds are still very different.

Pure debt funds only invest in bonds and do not invest in stocks and convertible bonds. Therefore, their risks and expected returns are among the lowest among bond funds, especially short-term pure debt funds.

In addition to investing in bonds, primary bond funds and secondary bond funds can also invest in market stocks, so the expected risks and expected returns are higher than pure bond funds.

2. Master the timing of buying and selling. The bond market is most obviously affected by economic fundamentals. The central bank will decide whether to loosen or tighten monetary policy based on economic development.

When funds are loose and interest rates fall, bonds may start a bull market. This is the time to invest in bond funds.

On the contrary, when funds are tight and interest rates rise, it is appropriate to sell bond funds or choose to buy long-term bond funds.

3. Fund portfolio Generally, index funds need to invest for a long time to obtain obvious expected investment returns. Relatively speaking, bond funds are more suitable for short- and medium-term investments.

And there is a negative correlation between index funds and bond funds. When the former rises, the latter usually falls, and vice versa.

Therefore, investors can add index funds and bond funds to the fund portfolio at the same time for purchase.