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. According to the classification standard of China Securities Regulatory Commission, bond funds refer to funds with more than 80% of fund assets invested in bonds.

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Generally speaking, when the market interest rate goes down, the bond price will rise, while when the market interest rate goes up, the bond price will show a downward trend. The understanding of this is that the coupon rate of general bonds is fixed. When the market interest rate falls, the dividend won by the holder will not decrease. On the contrary, because the market interest rate drops, the original bonds become more attractive because of relatively more dividends, so the price will naturally rise. Let's give the simplest example. Suppose the current market interest rate is 7%, and you invest 100 yuan in a bond, which means that you can receive 7% interest every year. If the market interest rate drops to 5%, and the bond you invested in before can still get a fixed interest rate of 7%, then its price will of course be more than 100 yuan. Therefore, when the market interest rate falls, the bond price rises.