funds that mainly invest in fixed-income financial instruments such as treasury bonds and financial bonds are called bond funds, which are also called "fixed-benefit funds" because the products they invest in have relatively stable returns. According to the proportion of investment in stocks, bond funds can be divided into pure bond funds and partial debt funds. The difference between the two is that pure debt funds do not invest in stocks, while partial debt funds can invest in a small number of stocks. The advantage of partial debt funds is that they can flexibly allocate assets according to the trend of the stock market and share the opportunities brought by the stock market under the condition of controlling risks. Generally speaking, bond funds do not charge subscription or subscription fees, and the redemption rate is also low. Bond funds have the following characteristics: (1) Low risk and low return. 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) The cost is low. Because bond investment management is not as complicated as stock investment management, the management fee of bond funds is relatively low. At present, the income of bond funds in China is stable. Investing in bonds has regular interest returns and promises to repay the principal and interest at maturity, so the income of bond funds is relatively stable. (4) Pay attention to the current income. Bond funds mainly pursue a relatively fixed income in the current period, and lack the potential for appreciation compared with stock funds, so they are more suitable for investors who are unwilling to take too many risks and seek stable income in the current period. Investors investing in bond funds mainly have the following advantages: (1) Low risk. Bond funds can effectively reduce the risks that a single investor may face when directly investing in a bond by pooling investors' funds to make portfolio investments in different bonds. (2) Expert financial management. With the increasing diversification of bond types, ordinary investors should not only carefully study the issuing entity, but also judge the macroeconomic indicators such as interest rate trend, which is often beyond their power, while investing in bond funds can share the results of expert management. (3) Strong liquidity. If investors invest in illiquid bonds. Only when it is due can it be cashed, while indirectly investing in bonds through bond funds can obtain high liquidity and can transfer or redeem the bond funds held at any time. Disadvantages of bond funds ① Only when they are held for a long time can they obtain relatively satisfactory returns. ② When the stock market is soaring, the return is still stable at the average level, which is lower than that of stock funds. When the bond market fluctuates, there is even the risk of loss. Compared with the direct purchase of government bonds, it has two advantages: (1) Investors can realize the bond fund at any time and have good liquidity. Investors can redeem at any time based on the net asset value of the fund unit on the day of application, but if investors invest in bank time deposits and voucher-type government bonds, it will be more difficult to realize them, and they will have to bear high interest losses paid in advance. (2) Compared with investors investing in bonds directly, buying bond funds can enjoy a variety of special treatments and get higher returns. For example, it can indirectly enter the bond issuance market and gain more investment opportunities; You can enter the interbank market and hold financial bonds with higher interest rates; You can enter the repurchase market and enjoy the treatment of super institutional investors who purchase new shares by financing and risk-free reverse repurchase interest income; The cash assets of the fund are deposited in the custodian bank, enjoying the deposit interest rate of 1.89%, which is much higher than the deposit interest rate of residents and enterprises with .72% (including interest tax); Enjoy various tax benefits. There is no need to pay stamp duty at the time of purchase and redemption, and the dividends obtained can also be exempted from income tax; You can also enjoy the low transaction cost of the fund's bond investment. For ordinary bonds, the two basic elements are interest rate sensitivity and credit quality. The rise and fall of bond prices is inversely related to the rise and fall of interest rates. The credit of a bond fund depends on the credit rating of the bonds it invests in.