Bonds will not lose money in the end, so losing money is chasing up and killing down. Overcoming it is much safer than stock funds. But the return is also small. Investment is high risk and high return, low risk and low return.

Huaxia Bond C has a great correlation with bond index, which means it is greatly influenced by the prosperity of national debt. The interest rate of national debt is mainly influenced by the national macro-economy. When the economy is overheated, the high interest rate of national debt allows residents to save money to cool the economy, while the low interest rate of national debt stimulates consumption and investment during the economic crisis.

At present, it is an unprecedented economic crisis in the world and the country, and it is not clear whether it can survive it. The central bank cut interest rates several times in a row, so there will be no big increase in national debt or bank interest rates in a year or two. In other words, bond funds are unlikely to rise.

Extended data:

The rise and fall of bond prices is inversely proportional to the rise and fall of interest rates. When interest rates rise, bond prices fall. It is necessary to know the change of bond price, so as to know how sensitive the net asset value of bond funds is to the change of interest rate, and the duration can be used as an indicator to measure it. The maturity of a bond depends on three factors: the maturity date, the cash flow of principal and interest expenses, and the yield to maturity. Duration is calculated in years, but it is different from the term of bonds. With this indicator, you can know how much the fund under investigation has earned or lost because of the change of interest rate.

The longer the duration, the more sensitive the net asset value of bond funds is to the change of interest. If the duration of the bond fund is 5 years, if the interest rate drops 1 percentage point, the net asset value of the fund will increase by about 5 percentage points; Conversely, if the interest rate rises by 1 percentage point, the net asset value of the fund will lose 5 percentage points. For another example, there are two bond funds with a duration of 4 years and 2 years respectively, and the net asset value of the former fluctuates about twice as much as that of the latter.

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