Investment is risky, and bonds are also risky. Interest rate, inflation, enterprise operation, national monetary policy and enterprise financing will all affect the investment income of bonds. For example, inflation is the main factor affecting bond yields. During the period of inflation, prices keep rising, and coupons with fixed coupon rates often depreciate due to rising prices.

The interest earned by buying bonds can't keep up with the rise in prices, and the real rate of return is reduced due to inflation. When inflation is serious, the state raises the interest rate of bank deposits and loans. In this case, enterprises and residents will give up bond investment and turn to other investment projects, and financial institutions will invest the funds realized from bonds in other markets, so that bond prices will fall.

Extended data:

Source of income:

1, interest income

As mentioned above, bonds are essentially white bars, so they all stipulate the coupon interest income that can be obtained when they are held at maturity. As long as the bonds held by bond funds can be held until maturity, they can generally get coupon income unless the bonds are difficult to pay. From this perspective, the income of long-term bond funds is higher than that of short-term bond funds. Because in general, the income of long-term IOUs is higher than that of short-term IOUs.

2. Price difference income

Because most bond funds are not open regularly, they need to meet the demand of investors for subscription and redemption or improve the fund's income, and will trade unexpired bonds.

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