Is the bond fund risky? The full name of bond fund is "bond fund", which refers to a fund that specializes in investing in bonds. By concentrating the funds of many investors, we can make portfolio investment in bonds and seek relatively stable returns. The following is the risk analysis of bond funds prepared by Bian Xiao for everyone, hoping to help everyone!

Is the bond fund risky?

Bond funds are not risky, but they are still slightly bigger than money funds. According to the risk level, the risk of bond funds belongs to medium and low risk. Of course, high risk often corresponds to high income, in other words, the income of bond funds is generally higher than that of money funds.

How do bond funds make money?

There are four sources of making money: interest income+transaction spread+bond repurchase transaction+stock investment income.

1. Interest income: interest paid by the borrower.

2. Trading spread: After the listing, the bond price fluctuates, and there is a trading spread if it is sold high and sucked low.

3, bond repurchase transactions: simple understanding is to add leverage. For example, when the market capital interest rate (for example, 2%) is lower than the bond coupon rate (for example, 3%), you can buy new bonds by mortgage bonds and get the extra income of 1%.

4. Stock investment income: mainly for hybrid bond funds. Tier 1 debt funds can purchase stocks and participate in stock trading through fixed increase, innovation and debt-to-equity swap. Secondary debt funds are relatively simple and can be bought directly from the secondary market like ordinary retail investors.

How about bond fund wealth management products?

There are many bond funds, and the yield of each bond fund is different. If we just look at the wealth management products of a bond fund, we should consider them from many aspects, generally from the past performance and profitability of the fund manager, the historical performance of the bond fund, the fund scale, the morning star level and so on.

Taking Morningstar classification as an example, the specific details are as follows:

The greater the Morningstar risk coefficient, the greater the risk, so if you want to choose a bond fund with a small risk coefficient, you must choose a bond fund with a small coefficient. Revenue is generally proportional to risk. Before buying a bond fund, you should analyze your risk tolerance. However, bond funds are still relatively stable, and there is basically no great risk.

Take the fund manager as an example. The details are as follows:

To buy a bond fund, we entrust the money to the fund manager for management. Fund managers decide the variety and time of buying and selling, which has a great influence on the ups and downs of performance and their own investment ideas and ideas on the operation of funds. Therefore, it is a key point to look at the working hours, past performance, rate of return from employment and rate of return during the term of office of fund managers.

Are bond fund wealth management products risky?

Bond fund wealth management products generally belong to medium and low risk, and the risk is lower than that of hybrid funds and equity funds, so the risk is not great. But generally, as long as it is a wealth management product, there will be risks, which does not mean that you will definitely make money if you buy it, but also depends on the future market conditions. But overall, the risk of bond fund wealth management products is relatively small, and if it is held for a long time, the possibility of making money is still quite large.

Risk analysis of bond funds

As long as it is financial management, there will be risks. For example, Yu 'ebao and Bitong do not guarantee the principal and interest, and there is also the possibility of losses. However, Yu 'ebao and Bitong have never suffered losses or negative returns, and bond funds are the same, with the possibility of loss of principal.

Bond funds are generally divided into pure bond funds and convertible bond funds, which will be different. The risk of pure bond funds is very small, slightly larger than that of money funds, and the income is slightly higher, but it is relatively stable, basically not losing money for a long time, and it is very likely to make money.

However, the risk of convertible bond funds is slightly greater than that of pure bond funds, and the income is the same. Because the convertible bond fund mainly invests in bonds, it has the risk attribute of bonds.

If the bonds invested by bond funds default, the net value of the funds will drop sharply, which is likely to exceed that of partial stock funds. At this time, the accumulated income will be seriously reduced, and there is the possibility of principal loss.