What is a bond fund? Bond fund is a kind of fund that mainly invests in bonds and obtains fixed interest income by buying bonds. Bond funds usually invest in a variety of bonds to reduce risk. Compared with stock funds, bond funds are less volatile and suitable for conservative investors. The income of bond funds mainly comes from the interest income of bonds, so its income is relatively stable.
Why do bond funds rise by dozens of points a day? Although the income of bond funds is relatively stable, its net value will fluctuate with market changes. The volatility of the bond market is usually low, but in some cases, the bond market will also fluctuate greatly. For example, if the market expects inflation to rise and bond prices to fall in the future, the net value of bond funds will also be affected. If interest rates rise, bond prices will also fall, thus affecting the net value of bond funds.
For some special bond funds, such as convertible bonds and high-yield bond funds, the net value fluctuation may be greater. For example, the net value of convertible bond funds is usually affected by the stock market, because convertible bonds can be converted into stocks, and investors may regard them as a mixed investment.
How to deal with the fluctuation of bond funds? Investors who invest in bond funds should have a clear understanding of its volatility and adopt scientific investment strategies. Investors can reduce risks by diversifying their investments, and don't put all their funds in one bond fund. Investors should understand the investment strategy of fund managers and choose fund managers with sound investment strategy and strong management ability. Investors should rationally allocate assets according to their risk tolerance and investment objectives, and do not blindly follow the trend or excessively pursue high returns.
Bond fund is a relatively stable investment product, but its net value will also be affected by market fluctuations. Investors can reduce risks through scientific investment strategies and obtain long-term stable returns.