Pure debt fund is a relatively low-risk fund variety, equivalent to a basket of bonds, and its income is relatively stable. But some novices are confused when they hear that it is not recommended to buy a pure debt fund, so why not recommend buying a pure debt fund? What is the reason? We have prepared relevant contents for your reference.

Reason one: the expected return of pure debt funds is not high.

Pure debt-based funds mainly invest in bonds, not in the stock market. Generally, the expected return is relatively low, not very high. If investors want to pursue higher returns, they are not suitable for buying. If you want to pursue higher returns, it is generally suitable for stock funds, hybrid funds and index funds. These funds fluctuate greatly, and when the market is good, the gains are relatively high, but it should be noted that the risks will be relatively high.

Reason 2: The pure debt fund may lose money.

Pure debt funds also have risks, and there may be losses when the market is not good. The net value of bond funds is calculated according to the price of bonds, which is somewhat similar to the price of stocks and will fluctuate. If the bond price falls, then the pure debt fund will also fall. When pure debt funds fall, investors who buy pure debt funds will lose money.

Therefore, if you are a conservative investor and don't want to take any risks, then it is not recommended to buy pure debt funds, because pure debt funds are risky and will lose money when the market is bad. It is generally suggested that time deposits will be better. Time deposit will protect the capital and interest, and there will be no loss, which is more suitable for conservative investors. It's just that time deposits have a long term and poor liquidity. If they withdraw early,

Reason 3: The handling fee of pure debt fund is relatively high.

Bond funds include subscription fee, redemption fee and operation fee, among which subscription fee is related to subscription amount. Generally, the more the subscription amount, the lower the charging standard, and the redemption fee of the fund is calculated according to the holding time, and the long-term holding fee will be lower, which is 0 redemption fee. But buying a fund is mainly to earn the difference. Under normal circumstances, it is not recommended to buy and sell funds frequently, so the handling fee is higher.