Since bond funds mainly invest in my country's bond market, interest rate increases will directly lead to a decline in bond prices. Therefore, interest rate increases will affect the income of bond funds, and expectations of future interest rate increases will also cause bond prices to fall. of decline.

Therefore, in the short term, interest rate increases will have a certain negative impact on bond funds.

Types of bonds: Classified by issuer (1) Treasury bonds: bonds issued by the central government.

It is guaranteed by the credit of a national government, so it has the best credit and is called a gilt bond (2) Local government bonds: issued by the landlord government, also called municipal bonds.

Its credit, interest rate, and liquidity are usually slightly lower than treasury bonds (3) Financial bonds: issued by banks or non-bank financial institutions.

High credit, good liquidity, safety, and interest rates higher than treasury bonds (4) Corporate bonds: Bonds issued by enterprises, also known as corporate bonds.

The risk is high and the interest rate is high (5) International bonds: bonds issued by various foreign institutions 2. Classified by repayment period (1) Short-term bonds: bonds within one year, usually three months, six months, nine months,

Several maturities of twelve months (2) Medium-term bonds: bonds within 1-5 years (3) Long-term bonds: bonds over 5 years 3. Classified by repayment and interest payment methods (1) Fixed-rate bonds: Interest is attached to the coupon of the bond

Coupon, usually paid half a year or once a year, with a fixed interest rate.

Also called interest-bearing bonds (2) One-time repayment of principal and interest bonds: a one-time payment of interest and repayment of the principal upon maturity (3) Discount bonds: The issue price is lower than the face value, and the face value is redeemed at maturity.

The difference between the issue price and the face value is the discount. (4) Floating rate bonds: The bond interest rate changes with market interest rates. (5) Progressive rate bonds: The interest rate is determined based on the length of the holding period.

The longer the holding period, the higher the interest rate (6) Convertible bonds: Bonds that can be converted into company stocks upon maturity 4. Classification by nature of guarantee (1) Mortgage bonds: Issued with real estate as collateral (2) Guarantee trust

Bonds: guaranteed by movable property or securities (3) Guaranteed bonds: A third party serves as a guarantor for the repayment of principal and interest (4) Credit bonds: Issued only based on the credit of the issuer. For example, government bond interest rate bonds refer to direct

Bonds issued based on government credit or on the government providing debt repayment expenditures.

In our country, interest rate bonds in a narrow sense include treasury bonds and local government bonds.