In bond investment, duration has surpassed the concept of time. At present, fund managers use duration to measure the sensitivity of bond price changes to interest rate changes.
Therefore, generally speaking, the shorter the duration, the smaller the fluctuation of bond prices and the smaller the risk; The longer the duration, the greater the fluctuation of bond prices and the greater the risk.
By looking at the duration, we can simplify the complex and help us better choose the bond fund that suits our risk tolerance. How to do it specifically? It's simple. Look at the name of the fund.
In the names of some funds, you can see the words "short debt, short debt and ultra-short debt". Through these names, we can roughly distinguish the duration of the portfolio held by a bond fund, that is, how long the bond is mainly invested.