The impact of interest rate cuts on bond funds is mainly reflected in the following aspects:

1. Bond price rise: The interest rate cut means that the coupon rate of bonds is more attractive than the deposit interest rate, which will lead investors to be more inclined to buy bonds, thus pushing bond prices up. As a tool for investing in bonds, the bond fund's increase in the bond price in its portfolio will be reflected in the increase in the fund's net value, thus bringing more benefits to investors.

2. Improvement of market liquidity: interest rate cuts will usually improve the liquidity of market funds, reduce the financing cost of enterprises, and help improve the overall profitability and risk appetite of the market. In such a market environment, the investment opportunities of bond funds may increase, which will help improve the performance of funds.

3. Changes in the yield of bond funds: Interest rate cuts will lead to a decline in the yield of bonds, which will affect the yield of bond funds to some extent. However, it should be noted that the yield of bond funds does not depend entirely on the coupon rate of bonds, but is also affected by many factors such as market interest rate, credit risk and liquidity risk. Therefore, in the interest rate reduction environment, the change of bond fund yield needs to consider many factors.