The so-called bond fund refers to fund products with bonds as investment targets. Usually bonds have a fixed investment period, while bond funds have no investment period limit. Therefore, if investors are willing, they can hold bond funds for a long time to invest. What about long-term bond funds? Let's get to know each other.

How about long-term bond holding funds?

Holding bond funds for a long time is nothing more than two situations, one is that investors gain income, and the other is that they face losses.

1 The main reason for the income is that the target of bond fund investment is bonds, and the bonds themselves are wealth management products that repay the principal and interest at maturity, so the risk of bond funds is relatively small. Holding bond funds for a long time may also bring long-term benefits to investors. Of course, low risk often means low income, but it is also a big income in the long run.

The risk of bond funds is not completely zero, and bond funds are also risky, so holding bond funds for a long time may cause financial losses to investors. The risks of bond funds mainly come from Yu Lili risk and inflation risk. Compared with inflation, the impact of interest rate is relatively short-term. When interest rates rise, it will bring downward pressure on bond prices. When commodity inflation is too high, it will lead to price increase and currency depreciation. The bond fund itself has a low income. In the event of inflation, the actual income of investors will be lower than the nominal income, resulting in losses.