At present, bond funds and bonds are very hot investment methods in the financial market. Bond funds refer to funds that invest in bonds, and bonds are securities issued by enterprises in accordance with legal procedures to raise funds and promise creditors to repay the principal and interest on a specified date. In fact, there are obvious differences between the two. How to distinguish them?

There are four main differences between bond funds and bonds: different nature, different pricing methods, different risks and different investment specialities.

1. Different natures

Nature is the most fundamental difference between bond funds and bonds. Bond funds are fund investments and follow the market rules of investment funds, while bonds are bond investments and follow the market rules of bonds.

2. There are differences in pricing methods

The net value of bond funds is calculated once a day according to the market, while bonds generally have an expected rate of return, which fluctuates according to the expected rate of return, and generally have a closed period, with interest paid at maturity or on a regular basis.

at the time of settlement, the bond fund purchases and redeems on the open day, which will not change because of the net value of the fund purchase and redemption. Bonds are bought and sold within a fixed period, and the bond price has little influence.

3. Different risks are taken

The risks of bonds come from the bonds themselves. Investors who buy bonds bear the risks and gain income alone. Bond funds belong to investment funds and have the characteristics of fund risk. Bond funds can allocate multiple bonds at the same time, and bond investment can only be invested in one at a time. On the other hand, bond funds also have fund risks brought by investment funds, sometimes increasing the proportion of other investment targets and increasing investment risks.

4. There are differences in investment specialities

Bond investment requires investors to have some professional and investment experience, and they can analyze market changes according to the actual situation. Bond funds allocate funds to professional managers, and investors can buy bond funds even if they don't have much investment knowledge, and get the benefits of the fund.