Bond funds generally have the following four investment risks: ① Interest rate risk. Bond prices are closely related to changes in market interest rates and change in the opposite direction. The longer the average maturity of bond funds, the higher the interest rate risk of bond funds. ② Credit risk. Credit risk refers to the risk that the bond issuer cannot pay interest and repay the principal on time at maturity. Some bond rating agencies will rate the credit of bonds. If the credit rating of a bond drops, the price of the bond will drop, and the net asset value of the fund holding the bond will also drop. ③ Early redemption risk. When the market interest rate drops, bond issuers can raise funds at lower interest rates, so they can repay high-interest bonds in advance. Funds holding early redemption bonds will not only be unable to obtain high-interest income, but also face the risk of reinvestment. ④ Inflation risk. Inflation will devour the purchasing power of fixed income, so investors of bond funds can't ignore this risk, and must buy some stock funds appropriately.