Bond funds refer to funds in which more than 80% of fund assets are invested in bonds such as government bonds and corporate bonds (including convertible bonds). Specifically divided into three categories:

1, standard bond fund

All invested in bonds, you can also call it a pure debt fund. Only investing in financial instruments with fixed expected returns and not investing in the stock market can be divided into long-term bonds and short-term bonds, which is the least risky of all bond funds.

2. Ordinary bond funds

That is, the main investment bonds (more than 80% of the fund's assets), but also invest in the stock market. It can be subdivided into first-class bonds, most of which are invested in the bond market, and a few participate in new shares, belonging to mixed bond funds. Secondary bonds, most of which invest in the bond market, a small number of stocks, and also manage new shares, belong to mixed bond funds, and the risk is slightly higher than that of primary bonds, and the overall difference is not particularly large.

3. Other strategic bond funds, such as convertible bonds.

Convertible bonds have the characteristics of both bonds and stocks. Buying bonds is equivalent to buying options. If the stock does not rise, you can also use bonds to collect interest. When stocks are bullish, bonds bought at low prices can be converted into stocks that have risen, and the risk is moderate.

Pure debt fund is a kind of bond fund, which specializes in investing in bonds. Other funds can invest in bonds or stocks, so the risk of buying a pure debt fund is the smallest among bond funds. The choice of pure debt funds can be based on the fund manager's past performance and fund size, while other bond funds may have invested in stocks, so it depends on the trend of the underlying stocks.

Bond funds can pay dividends. Generally, funds are profitable. After the current income makes up for the previous losses, there is still a surplus. After the distribution of fund income, the net value of each fund share cannot be lower than the face value. Bond fund dividends are similar to stock dividends, and cash dividends and dividend reinvestment are adopted.

For example, an investor holds 65,438+00,000 shares of a bond fund, and each fund pays a dividend of 0.06 yuan. At that time, the net value of the fund was 1.5 yuan. When the fund company pays dividends in the form of cash distribution, investors will have more 600 yuan cash in their fund accounts. If the company uses dividend reinvestment to pay dividends, there will be 400 more fund shares.