Is bond fund risky?

Hi Mr. Tan,
How about Bond Funds ? Is it safe ? Its unit price keeps dropping.

I have brought S$x of Bond Fund from Maybank at S$0.99 per unit and it was at S$0.86 now. It dropped by $0.13 dropped within 6 months time.

What shall I do now ? Cut lose or hold ? I was also told by the bank staff it was safe since it was a bond and having very little risk ...

Thanks you in advance for your advice please. I know you are very busy .. a lot of people seeking advice from you ...

REPLY
I am not familiar with this bond. It is all right to keep the investment.

It is also all right to sell the investment, as you are getting the actual value of the underlying bonds. Some of the bonds may have dropped in value due to the credit crisis.