Do short-term bond funds lose money?
I. Product nature
Short-term bond funds, like other fund products, the expected return on investment when investors buy and sell funds depends on the net value of the fund unit. If the net value of the selling unit is lower than that of the buying unit, then the fund will lose money.
Therefore, short-term bond funds belong to non-guaranteed floating expected income products, and fund contracts generally do not promise guaranteed capital and minimum expected income. Theoretically, there is a risk of loss of principal.
Second, the investment objectives
1, investment period
The remaining maturity of bonds invested by short-term debt funds generally does not exceed 397 days. Bonds have a fixed term, and the issuer of the bonds needs to pay the principal and interest as agreed at maturity. The so-called remaining term refers to the number of days from debt repayment. The shorter the bond maturity, the lower the uncertainty affected by interest rate and the more stable the expected return.
2. Investment scope
The investment scope of short-term debt funds is limited to bonds, central bank bills and other fixed expected returns and bank deposits. The types of bonds are mainly government bonds, policy financial bonds and corporate bonds, and stocks and convertible bonds are not invested.
Bonds are a relatively stable investment category. Bond bear market can earn coupon expected income, and bond bull market can earn coupon and capital gain at the same time.
Therefore, on the whole, the performance of short-term debt funds is relatively stable, the probability of investment profit is relatively high, and the risk of loss is relatively small.
The above contents about the loss of short-term bond funds, I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.