Bond funds mainly make money by investing in bonds. The income from investing in bonds mainly comes from regular fixed interest payments provided by bond issuers; It may also come from the rise and fall of bond prices. In addition, the income of bond funds may also come from playing new shares.

The risk of bond funds is reflected in the fluctuation of net value. In fact, due to the characteristics of bond investment, its volatility is far less than that of stock funds, which reflects the robust characteristics of bond funds. What you said is "the net value hovers between 1. 1, with little difference". Of course, if you want to see the investment income of bond funds, you haven't observed it long enough.

Because the domestic audit of bond issuance is strict, the default risk of bonds invested by bond funds (the risk of not repaying principal and interest) is relatively small, mainly the interest rate risk (the risk of raising interest rates). Because the interest rate adjustment is not large, even if the interest rate increase causes the bond price to fall, the loss will not be too great-personally, it will not lose to the bank's deposit interest rate.

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