Is pure debt fund risky? Pure debt funds mainly invest in bonds with fixed expected returns, such as treasury bonds, financial bonds and short-term financing bills, and the bond investment ratio is 100%. Therefore, the expected return and risk of pure debt funds are relatively stable, and the risk level is mostly low, which is suitable for investors with stable risk preference.

All funds belong to non-guaranteed floating expected income products, and pure debt funds are no exception, and there is a risk of principal loss. The risk of pure debt fund mainly comes from bond default risk and market interest rate risk.

1, bond default

Bond default means that the bond issuer cannot pay the principal and interest in time after the bond expires. If the bonds invested by the fund default, then the fund will inevitably lose money.

However, most bonds issued in China have high credit ratings, and bond funds generally only buy senior bonds such as government bonds and financial bonds, so the probability of bond default is small.

2. Market interest rate risk

In addition to the expected interest income, buying low and selling high in the secondary market to earn the difference is also the main expected income source of bond investment. Bond prices are affected by market interest rates, and the two are generally inversely proportional. When the bond market interest rate rises, the bond price falls, and vice versa.

However, the bond price has also gone up and down, and the bond still has interest at the end of the holding period. Therefore, even if a pure debt fund loses money, the scope of loss is limited, and generally it will not lose money.