Did the bond fund lose money?
Buying bond funds may lose money.
1. Bond funds are usually managed by fund managers. When investors buy a bond fund, they actually buy a part of the fund. When the value of bonds in the fund rises, the value of investors' shares will also rise, and vice versa. So if the fund manager's management ability is not good, it may lead to losses.
2. Bond funds mainly invest in bonds, so they also have the risk nature of bonds. If the bonds invested by bond funds default, the net value of the fund will drop sharply, which is likely to exceed that of partial stock funds, which will shrink the fund's income and even lose all the accumulated income before.
3. If there is serious inflation in the market, the state will raise the interest rate of bank deposits and loans, so that residents will give up other special investment projects to invest in bonds, and financial institutions will turn bonds into ready-made funds and invest in other markets, which will lead to a decline in bond prices and may also cause losses.
What are the risks of buying bond funds?
1, credit risk
Generally, it refers to the risk that the bond issuer cannot pay interest and repay the principal on time. If the bond issuer fails to pay or repay the principal on time, the bond will face high credit risk and demand higher income compensation. Some institutions will also rate the credit of bonds. If the credit rating of a bond falls, its price will fall and its net asset value will also fall.
2. Interest rate risk
Bond prices and interest rates change in opposite directions, that is, interest rates rise, bond prices fall, and vice versa. The longer the maturity of general bonds, the greater the impact of market interest rates.
3. Capital flow risk
If the central bank's monetary policy tightens and capital flows out, there will be temporary tension in Shi Hang, which may lead to the irreconvertibility of bonds and bring certain risks.