Bond funds refer to funds that invest in bonds, with higher risks than money funds and lower risks than equity funds. In China, bond funds mainly invest in government bonds, financial bonds and corporate bonds. In China, the development of bond funds has just started. At present, only a few bond funds have been established and announced. For example, Huaxia Bond Fund, China Merchants Bond Fund, Harvest Financial Bond Fund, Huabaokang Bond Fund and Dacheng Bond Fund. To invest in bond funds, we need to consider two basic elements: interest rate sensitivity and credit quality. The rise and fall of bond prices is inversely proportional to the rise and fall of interest rates. When interest rates rise, bond prices will fall. The credit quality of bond funds depends on the credit rating of the bonds they invest in.
Generally speaking, bond funds have lower rates. Pure debt funds (short-term debt funds) do not charge fees. There is no handling fee for the subscription and redemption of monetary funds, but a certain custody fee is charged.
Why do we invest? Why don't we save the money? We just want something in return. Buying a fund also requires you to plan and build a fund portfolio that suits you. Buying stock funds alone has high returns, but it also bears huge risks. Simply buying bond funds, money funds or capital preservation funds is less risky, but the income is also very small, which is not desirable for investors. Therefore, we investors should establish our own investment portfolio and adjust the proportion of various investment products according to the risks we can bear. Conservatives will allocate more bond funds and radicals will allocate more stock funds.
I also casually mention a few words, if the landlord's risk tolerance is relatively small, the bond fund is still relatively good, with low risk and moderate income. Monetary funds are highly liquid, but their income is extremely low, which is similar to savings. As interest rates rise, the value of bonds becomes smaller. Galaxy income is a partial debt fund, which has performed well recently.
Galaxy income fund is a low-risk variety, which mainly focuses on bond investment and gives consideration to stock investment. Its stock investment ratio is controlled within 20%. The allocation of shareholding industries is relatively scattered, and it is adjusted in a timely manner with changes in market conditions. In different stages of the market, fund managers show strong stock selection ability. In 2006 and 2007, although the overall performance of the bond market was not as good as that of the stock market, the fund still achieved an annual income of more than 30%. Under the market shock in 2008, the Fund further adopted the operation strategy of lightening positions, effectively controlled the risk of net value decline, and showed strong resilience compared with partial stock funds.