Although bond funds are low-risk funds, their returns are relatively stable, but sometimes bond funds will explode, which will bring great losses to investors. What should bond funds do if they explode? How can bond funds avoid stepping on thunder? Let's take a look.
The bond fund's short position refers to the bond fund's default. When bond funds trample on thunder, the net value of bond funds will drop sharply. For some investors with large positions, they can choose to sell the fund as soon as possible to avoid further losses caused by the continuous decline in the net value of the fund.
When buying debt funds, you can pay attention to the credit rating of bonds, such as AAA bonds, which have the highest credit rating and relatively low default probability. In addition, we can pay attention to some funds with a long history and good historical performance to avoid stepping on thunder.