If you just buy a fund, you can choose other funds to invest. If you are building a portfolio, bond funds can almost become one of the necessary members of your portfolio. Why is this?
First, bond funds mainly invest in bonds, with stable returns and small fluctuations.
According to historical data, from 2006 to 2020, bond funds achieved positive returns in 15 years and 14 years. It can be seen that its income is stable.
Second, in terms of asset allocation, assets such as bonds and stocks have low correlation, which can reduce the overall account risk.
Investment must not be divorced from asset allocation. Doing a good job in asset allocation will help us cope with the changes in market style, and at the same time, we can better grasp the dividends of assets that perform well in different market situations.
The correlation between bonds and other assets such as stocks is relatively low, which is different from the high risk and high return of stocks. Bond funds are relatively stable, which can play a good role in diversifying risks, effectively smoothing the fluctuation of investment portfolio and reducing the overall risk of accounts.
Third, bond funds have low investment threshold, low transaction rate and good liquidity.
The investment threshold is low, and many bond funds can even start fixed investment at 10 yuan. Basically, everyone can cross the past investment threshold without worrying about funding. Of course, this is also the advantage of all Public Offering of Fund.
Compared with other active stock funds, the overall management rate of bond funds is relatively low. And the liquidity of bond funds is relatively good, which is suitable for planning short-term funds.