The expected returns of bond funds are less volatile, so many investors regard them as a substitute for money funds. However, bond funds also have the risk of floating losses, so when is it cost-effective to redeem bond funds?

Let’s learn about bond fund redemption time techniques together.

1. When is it cost-effective to redeem bond funds? Most of the funds of bond funds are invested in bonds, so the expected return of bonds will directly affect the expected return of bond funds.

The bond market is greatly affected by interest rates, and the trends in the bond market are relative to the stock market.

Generally, when the stock market is in a bear market, it is a good time to buy bond funds. On the contrary, when interest rates rise, monetary tightening, and the stock market turns from a bear market to a bull market, it is suitable to redeem bond funds.

2. Bond fund redemption time skills For ordinary individual investors, it is difficult to judge whether the stock market is a bull market or a bear market. Overall, the bear market time in the bond market is shorter.

Even in a bear market, the decline of bond funds will not be very large, and the fund is a medium- and long-term investment product. If there is a floating loss on the book in a bear market, the cost can be amortized by adding positions at a low level.

Therefore, for individual investors, in addition to paying attention to the trends of the bond market and stock market, they can also use the following methods to determine whether redemption is needed: 1. Stop-profit redemption When investors buy bond funds, they should based on the past performance of the fund.

Set a profit stop point, and all or part of the fund will be redeemed when the expected income of the fund reaches the expected expected income target.

For Xiaobai, this is a relatively intuitive redemption method.

2. Stop-loss redemption: When a fund suffers short-term losses, it is generally recommended to add positions at low prices, and you will have the opportunity to make profits when the fund rises in the future.

However, when a fund experiences sustained losses in a bull market, it is necessary to consider stop-loss redemption.

3. Consider redemption fees. Bond fund redemptions generally charge different proportions of redemption fees based on the number of holding days, so investors must also consider handling fee costs when redeeming.

I hope the above content about when it is cost-effective to redeem bond funds will be helpful to everyone.

Warm reminder, financial management is risky, so investment needs to be cautious.