Pure bond funds are a type of fund products with low risks and relatively stable returns. However, even pure bond funds are not fully insured. Sometimes pure bond funds will fall or even fall sharply.
So, if even pure bond funds will fall, what other financial management methods are more reliable?
Which financial management methods are more reliable than pure bond funds?
The reason why pure bond funds fall is that on the one hand, pure bond funds are net value products. As long as net value products, there will be some declines when there is a rise.
On the other hand, it is because the pure bond foundation uses most of its funds to invest in bonds, and the price of bond will change according to changes in market trends. If the bond market falls for some reasons, pure bond funds are likely to fall.
Therefore, as long as a financial product can avoid the above two defects, it can be more reliable than a pure bond fund. Specifically, there are mainly the following categories.
is the financial management with fixed income.
such as time deposits, large-denomination certificates of deposit , treasury bonds, treasury bond reverse repurchase , etc.
If you want to talk about reliable financial management, there should be no more reliable than fixed income financial management. Because buying fixed income financial management can not only get fixed interest steadily, but also have a guaranteed principal.
Time deposits and large-denomination certificates of deposit are protected by deposit insurance. Deposits less than 500,000 are basically without any risks. Deposits above 500,000 are only at risk when bank bankruptcy occurs.
Treasury bonds are bonds guaranteed by with national credit as . The risk of default is close to 0. As long as you hold it after buying it, not only will the principal be risky, but there will also be interest.
The reverse repurchase of treasury bonds is guaranteed by treasury bonds. If an institution that borrows money from the market through treasury bonds cannot afford to pay back the money, it must use the treasury bonds it holds to settle the accounts, so there is basically no risk.
And when pure bond funds fall, these fixed-income financial management, yield may also rise. Because the decline of pure bond funds means that the interest rate of bonds has risen. For example, treasury bonds will rise when pure bond funds fall.
In addition, the rise in bond interest rates may also drive the rise in other interest rates. Once interest rates rise, these fixed income financial management will benefit.
Another type is low-risk financial management with unfixed returns.
Although the risk of pure bond funds is low, the lowest is medium and low risk, and the one with lower risk than medium and low risk is low risk.
It is obvious that low-risk financial management is more reliable than pure bond funds. Common low-risk financial management include money funds, cash management, structured deposits, , etc.
Although money funds are also funds and even invest in bonds, money funds almost never fall.
Because money fund is not a net value product, its income calculation method is to spread the total income for a period of time to every day, so as long as the total income is positive, the daily income of money fund is positive.
Cash management is similar to money funds, and the loss is very small, and the overall return is slightly higher than money funds.
Structural deposit is a guaranteed product. The difference between it and other guaranteed products is that the returns are not fixed. However, no matter how much or how much the income of structured deposits is, it will not be a negative number, otherwise it will not be a guaranteed product.
and above are financial management products that are more reliable than pure bond funds. If the pure bond fund returns are not good one day, these financial management methods can be replaced.
