Bond funds are widely loved because of their capital preservation performance, but many new investors have discovered that after buying a bond fund, they hold it for a period of time and redeem it. Not only do they not make any money, they actually lose money. Do bond funds lose money?

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What are the reasons for losses when buying bond funds?

In fact, in theory, any fund is an equity investment and has corresponding risks, but the level of risk is different. This is the reason why bond funds lose money.

1. Short holding period. Generally speaking, the transaction cost of a fund includes three parts: subscription fee/subscription fee, management fee and redemption fee. The expected investment income of bond funds mainly comes from the increase in the market value of bonds and the interest income of bonds.

For the most part, if an investor holds a bond fund for a short period, the expected return will be relatively small, while the subscription fee/subscription fee, management fee and redemption fee are fixed expenses. When the holding period is

When the expected return is lower than the transaction cost, redemption will result in a loss of principal.

2. The operation of bond funds is not ideal. The essence of the fund is collective asset management. When the fund manager mistakenly invests in unsatisfactory bond targets during the investment process, such as investing in a certain corporate bond, during this period, the company goes bankrupt and becomes insolvent.

, at this time, the company's bonds held will cause substantial losses to the fund and also cause losses to investors' principal.

Therefore, bond funds are not necessarily capital-guaranteed funds. The above two points are the main reasons. When purchasing bond funds, you still need to pay attention to the fund’s past performance, the fund manager’s experience, the fund’s investment research capabilities, etc., and make a comprehensive judgment.

Only in this way can we make effective decisions.