What is the relationship between the rise and fall of pure debt?
The rise and fall of pure debt is related to market interest rate and bond price. Among them, the interest rate will be agreed when the bond is issued, but the market will change during the bond's existence. If the interest rate of new bonds rises and the old bonds are abandoned, then the existing bonds are at risk of falling. Relatively pure debt funds are investment bonds, so they will also fall.
In addition, the price of bonds will rise and fall according to the supply and demand relationship between the two parties to the transaction. For example, the amount of money to buy bonds exceeds that of the party selling bonds, and many people want to buy but can't buy them, so there will be a shortage of supply and bond prices will rise. If the amount of money to buy bonds does not exceed the amount of money to sell bonds, and many people want to sell them but no one buys them, there will be oversupply and bond prices will fall.
When did bond funds skyrocket?
As investment targets rise, bond funds will also rise. On the other hand, when there is a huge redemption of bonds, there will be a large number of redemption rates because there are more investors who redeem them. Because the redemption fee of huge redemption is included in the fund assets, the yield curve will be linearly raised. However, it should be noted that huge redemption funds will not have a real impact on investors.
According to the regulations, the redemption fee charged by the fund shares of Class A funds with a holding period of less than 30 days belongs to the fund property in full, and 75% of the redemption fee charged by the fund shares of Class A funds with a holding period of not less than 30 days but less than 3 months belongs to the fund property.
Under normal circumstances, bond funds are relatively stable, and there are few sudden ups and downs. Investors can refer to the past performance of bond funds when buying them. When choosing, they give priority to bond funds with good past performance. Although the past performance does not represent the future, it will still have certain reference significance. Then, they choose a good fund manager because the fund manager is managing the fund.