Bond funds are funds that specialize in investing in bonds. By pooling the funds of many investors, it makes portfolio investment in bonds and seeks stable expected returns.
National debt, also known as national debt, is a kind of government bond issued by the central government to raise financial funds, which promises to pay interest within a certain period of time and repay the principal at maturity.
The difference between bond fund and national debt
1. Bond funds and national debt are different in nature. Bond funds belong to the fund category, and national debt belongs to the bond category.
2. The investment direction is different. The investment direction of bond funds is generally high-security corporate bonds, convertible bonds and other high-liquidity bond products, while government bonds are generally policy investments such as military industry and finance.
3. Their expected return methods are different. Bond funds are net worth, with uncertain expected returns and the possibility of short-term losses. Treasury bonds generally have a fixed interest rate, and the expected risk return is generally lower than that of bond funds.
Relationship between bond fund and national debt
1, both of which have low purchase thresholds. The denomination of the national debt is 100 yuan, and the purchase amount is an integer multiple of 100. Bond funds generally use 100 yuan as the initial investment amount.
2. The investment risks of bond funds and government bonds are relatively low among similar products, which are suitable for cautious investors to invest and pursue long-term investment and stable expected returns.
3. The interest rates of bond funds and government bonds are higher than those of ordinary bank time deposits.
Therefore, in general, the risk of bond funds will be greater and the possibility of obtaining expected returns will be higher.
The above is what is the difference between national debt and bond fund, for reference only, and I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.