Bond fund is an important investment type. Many new investors do not know what the risk of investing in bond fund is, and whether the bond fund will lose money. Here is a brief explanation for you, hoping to help you.
Income and risk of bond funds
The long-term yield of bond funds is not as high as that of index funds, but the average long-term yield of bond funds is about 6% - 7%, which is good compared with bank financing. However, bond funds also have bull and bear markets, when the bull market yields will be better.
So we see the characteristics of bond funds: bond funds are not capital guaranteed, and bond funds also have volatility risks, but are less volatile than index funds. Moreover, long-term investment in bond funds is also highly profitable.
When we invest in bond funds, we have to pay attention. We should avoid smaller bond funds and try to choose varieties with a scale of more than 100 million.
Cycle and fluctuation of bond funds
The bull bear market cycle of the bond market is much shorter than that of the stock market, with an average of 2-3 years. The bear market of the bond market is not long, much shorter than that of the stock market. So on the whole, the cycle of bond funds is shorter than that of stock funds, the volatility risk is much smaller than that of stock funds, and it is easier to invest.
Classification of bond funds
Bond funds are divided into the following types:
1. Partial debt hybrid fund: It is a hybrid fund. Strictly speaking, it is not a bond fund, but it can adjust bonds and stocks
