Which is more risky, index fund or bond fund?
Index funds are more risky because index funds invest in a basket of stocks and bond funds invest in a basket of bonds. The risk of stocks is higher than bonds, so the risk of index funds is higher than that of bond funds. As an investor, if you want to seek more stable income, it is more appropriate to choose a bond fund. On the contrary, as an investor, if you want to beat inflation, pursue high returns and take certain risks, you can choose index funds.
bond funds
Simply put, it is a fund that invests in various bonds. However, bond funds can not only hold bonds, but also hold stock positions, but the bond positions cannot be less than 80%.
Bond funds consist of a series of family members. It has the safest national debt issued by the state, financial bonds issued by banks or other financial institutions and corporate bonds issued by enterprises. Of course, the different proportion of each bond determines the different risks.
But generally speaking, bonds provide investors with fixed income and repay the principal at maturity, and the risk is lower than that of stocks. Therefore, compared with stock funds, bond funds have the characteristics of stable income and low risk.
Indexed securities investment fund
Simply put, it is to track a specific index, buy all or part of the stocks in the index, and get the same income as the index. It can be seen that index funds are stocks after all, which are relatively volatile and risky, but have relatively high returns.
Of course, the index of index fund is to select a basket of stocks according to specific rules and calculate their prices through certain methods to get an index. It also has many family members, such as camp classification, industry index fund and broad-based index fund. Among them, the broad-based index does not limit which industry to invest in when selecting stocks, while the industry index is greatly influenced by the characteristics of the industry.
The above are some contents of index funds and bond funds, which I hope will help you.