Is the loss probability of bond funds high?
Bond funds are unlikely to lose money. Bond fund refers to a fund in which more than 80% of fund assets are invested in bonds such as national debt, financial debt and corporate debt, and its fund income is mainly determined by the bonds invested. The income of bonds mainly comes from the interest income of bonds and the spread income of bond transactions, and the interest income of bonds is fixed, so the risk of bonds is relatively small, so the risk of bond funds investing in bonds is relatively small.
What are the risks of bond funds?
1, credit risk
In China, the risk that the issuer of bonds with investment income cannot pay interest and repay the principal on time is the lowest, followed by the low risk of financial bonds and the high risk of corporate bonds. Some institutions will rate the credit of bonds, and the decline of bond credit rating will lead to the decline of its price and net asset value.
2. Interest rate risk
Bond prices and interest rates change in opposite directions, interest rates rise, bond prices fall, and vice versa. The longer the maturity of general bonds, the greater the impact of market interest rates.
3. Liquidity risk
If the central bank's monetary policy tightens and capital flows out, there will be a short-term shortage of funds in the market, which may lead to the inability to exchange bonds and bring certain risks.
As mentioned above, any investment is risky, so be cautious. If you need to know more, you can pay attention to Bian Xiao.