Is it safe to buy bond funds? Because of its advantages such as simple transactions, easy operation, and moderate risks, funds have become one of the most common ways of managing money in our daily life.

So today the editor is here to sort out for you whether bond funds are safe. Let’s take a look! Are bond funds safe? Bond funds are relatively safe and their risks are small.

However, small risk does not mean that there is no risk. As long as it is investment and financial management, there will be certain risks. It just means that various investment and financial management methods have different degrees of risk.

The risks of bond funds mainly come from the following aspects.

We all know that when the net value of a fund falls, funds can only do long unilaterally, and cannot be like futures, which can do both long and short.

Therefore, when the net value of the fund drops, that is, the price of the fund drops, the expected returns of our investors will be affected.

We all know that the price of asset prices declines. The price of a fund's investment objects determines the net value of the fund to a certain extent. If the price of the fund's investment objects drops, the corresponding net value of the fund will also decline.

The main investment objects of bond funds are bonds, such as treasury bonds, financial bonds, corporate bonds and some short-term financing bonds.

The price of bonds is affected by market interest rates to a certain extent. When the market interest rates are higher, the coupon rate of bonds will be relatively lower, and there will be less investment value.

People are unwilling to hold bonds and will invest their funds in other financial instruments.

A default risk bond fund is a portfolio of assets, including not just Treasury bonds, but also other bonds.

We all know that the default risk of government bonds is very low, but the same cannot be said for other bonds, especially corporate bonds. Once a company performs poorly or goes bankrupt, it is very likely that it will not be able to repay its debts.

How can you make money by buying funds? There is no way to guarantee that you will make money by buying funds. We can only increase the probability of making money through certain analysis and operation methods.

For example: when selecting funds, reduce investment risks by analyzing the Sharpe ratio, Jensen index and Treynor index of the fund.

At the same time, we can also diversify investment risks through fixed investment in funds, reduce our investment costs, and reduce our losses caused by fund fluctuations.

All in all, any investment and financial management is risky. There is no method that can 100% guarantee making money. It can only increase the probability of making money. Investment is risky, so you need to be cautious when entering the market.

Where does the money that the fund loses go? The money that the fund loses may go to other investors, because when trading, the main thing is to earn the price difference, and many people are buying the fund, and everyone buys

The positions are all different, so some people lose money and some people make money. This money is the price difference. When you buy at a low position and sell at a high position, you lose money, while other investors

It means buying at a low level and selling at a high level, which means making money.

Secondly, some of the money may go to the fund company. You must know that fund companies need to charge management fees. No matter whether the fund rises or falls, they still need to charge management fees, so part of the money goes to the fund company.

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In addition, it may be in the hands of intermediaries. For example, you can purchase funds on third-party platforms, including bank sales, Alipay sales, etc. If it is sold on a bank, then you need to pay a custody fee to the bank.

This fee is paid out of the fund's assets, and so on.