What are the risks of bond funds: 1. Interest rate risk bond prices are closely related to changes in market interest rates and change in the opposite direction. The longer the average term of bond funds, the higher the interest rate risk of bond funds; 2. Credit risk refers to the risk that the bond issuer cannot pay interest and repay the principal on time. When the credit rating of a bond declines, the price of the bond will decline, and the net value of the fund holding the bond will also decline; 3. Early redemption risk When the market interest rate drops, bond issuers can raise funds at lower interest rates, so they will repay high-interest bonds in advance. Funds that redeem bonds in advance will not only be unable to obtain high-interest income, but also face the risk of reinvestment; 4. Inflation risk Inflation will devour the purchasing power formed by fixed income, that is, the income from buying this fund cannot match the current price, so investors of bond funds cannot ignore this risk.

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1. Bond funds, also known as bond funds, refer to funds that invest in bonds. By pooling the funds of many investors, they make portfolio investments in bonds and seek relatively stable returns. Bonds are creditor's rights and debt certificates issued to investors when the government, financial institutions, industrial and commercial enterprises and other institutions directly borrow money from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions.

Second, the difference between money funds and bond funds mainly lies in the different investment objects. Money fund is an open-end fund, which invests in the money market, mainly investing in bonds, central bank bills, repurchase and other short-term wealth management products with high security; Bond funds are funds that invest in bonds, mainly treasury bonds, financial bonds and corporate bonds. The income of the money fund is only higher than the interest rate of bank time deposits, but there is no interest tax. You can redeem it at any time, and generally you will receive the funds the next day after applying for redemption. Therefore, the money fund is very suitable for units and individuals who pursue low risk, high liquidity and stable income. These two products have their own advantages.

3. As the king of cash management, the money fund has high security, high liquidity and stable income, which is similar to "quasi-savings" and always shows the investment charm without obvious signs. The two main factors affecting the performance of bond funds are interest rate risk, that is, the sensitivity of the bonds invested to interest rate changes (also known as duration) and credit risk. When choosing a bond fund, we must understand its interest rate sensitivity and credit quality. On this basis, we can understand how high the risk of the fund is and whether it meets your investment needs.