The rise and fall of bond funds is the result of many factors. The most important thing is the change of market interest rate, and the interest rate trend of different types of bonds is different. When the market interest rate rises, the net value of the bond fund will fall, because the bond interest rate it holds is lower than the market average interest rate. When the market interest rate drops, the net value of the bond fund will rise, because the bond interest rate it holds is higher than the market average interest rate. In addition, the bond fund's portfolio structure, credit rating, holdings and other factors will also affect the rise and fall of the fund.
Investors should reasonably assess their risk tolerance and adjust their investment strategies in a timely manner according to market conditions. When the market is improving, we can increase the weight of bond funds and seize the opportunity of rising; When the market is weak, you can reduce or close your position appropriately to avoid losses. In addition, investors can avoid risks and invest steadily by investing regularly, diversifying risks and understanding the investment strategies of fund managers.