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Is the bond fund losing money? The answer is this.
Bond fund is also a kind of fund. General bond funds refer to funds whose investment targets are mainly bonds. Bond funds usually invest at least 80% of their fund assets in the bond market. The risk of debt funds is relatively low among many fund types, so is there a loss in bond funds? Let's get to know each other.

Is there a loss in the bond fund?

Bond funds also suffer losses. On the one hand, the bond fund itself is not a principal guaranteed fund, which guarantees neither income nor principal; On the other hand, the target of bond fund investment is bonds, which has certain risks. The main risks are credit risk and interest rate risk. The credit risk of bonds mainly comes from the fact that if the bond issuer cannot pay the principal and interest, then the fund will lose money on the principal. Interest rate risk mainly comes from the change of market interest rate. If the deposit interest rate rises, the bond market will be hit to a certain extent, which will further affect the bond fund market.

Of course, the risk of bond funds is also related to the types of bonds invested. If you invest in bonds, the credit risk will be smaller and there will be national endorsement; Taking corporate bonds and financial bonds as examples, if there is a default, it will directly lead to a sharp drop in the net value of the fund, which may even exceed that of partial stock funds, and will also lead to a loss of accumulated income of the fund.

In the actual bond fund investment process, the possibility of bond fund losses is still relatively small. Even if there is a loss, many investors will go back and forth through the fund.