Bond funds, also known as bond funds, refer to funds that specialize in investing in bonds. By concentrating the funds of many investors, we can make portfolio investment in bonds and seek relatively stable returns.
Bonds are creditor's rights and debt certificates issued to investors when the government, financial institutions, industrial and commercial enterprises and other institutions directly borrow money from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions.
Features:
1. Low risk, low income
Because the investment object of bond funds-bonds have stable returns and low risks, bond funds have low risks, but at the same time, because bonds are fixed-income products, bond funds have low risks but low returns compared with stock funds.
2. Low cost
Because bond investment management is not as complicated as stock investment management, the management fee of bond funds is relatively low.
3. Stable income
Investment bonds have regular interest returns and promise to repay the principal and interest at maturity, so the income of bond funds is relatively stable.
4. Pay attention to current income
Bond funds mainly pursue relatively fixed income in the current period, and lack appreciation potential compared with equity funds, so they are more suitable for investors who are unwilling to take too many risks and seek stable income in the current period.
1. Generally speaking, the yield of bond funds is maintained at around 5%, which will fluctuate a little with the financial market. The average annual income of bond funds is usually slightly higher than that of banks in the same period, while the average annual income of hybrid bond funds usually exceeds 10%. The average annual income of pure bond funds will be slightly better, slightly higher than that of one-year national debt.
2. The income of bond funds is related to the management ability of fund managers and the monetary policy of the country in that year. For example:
Fund managers with outstanding management skills may earn about 30% or 50% a year. For example, Alipay data of 202 1 shows that the income of enhanced bond funds in the past year was as high as 56%. If the fund manager's management ability is poor, there will even be losses. In Alipay, the income of some pure debt funds actually dropped by nearly 6% in the past year.