1. What is a bond fund?
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.
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.
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. Bond funds can also put a small amount of money into the stock market. In addition, investing in convertible bonds and issuing new shares are also important channels for bond funds to obtain income.
In China, bond funds mainly invest in government bonds, financial bonds and corporate bonds. Usually, bonds provide investors with a fixed return and repay the principal at maturity, and the risk is lower than that of stocks. Therefore, compared with stock funds, bond funds have the characteristics of stable income and low risk.
Second, what is the impact of the income of bond funds, and what is it generally?
The annual rate of return of bond funds is uncertain. If it is a pure bond fund, the general yield is probably below 5%. Bond funds participate in stock investment, the income will be high, but the risk will be high. Due to various factors such as the market, the rate of return is uncertain.
The factors that affect the income of bond funds are:
A factor affecting bond yield: credit factor.
Refers to the factors caused by the issuer's poor financial situation and inability to repay its debts. If the bonds invested are issued by the government, it is necessary to consider national policies, such as the replacement of the ruling party, which may have an impact on the returns of bonds.
The second factor that affects the bond yield: the market factor.
This means that unexpected changes in the bond market or the national economy have affected the demand for bonds. Market factors arise from the variability of market conditions, which is usually measured by the price index of bonds. The essence of market factors is the alternation of market ups and downs, and its reason lies in the industrial cycle, that is, the cycle of recession and prosperity. Because the market cycle has a serious impact on bond prices, the stock network believes that if investors can realize the changing cycle and invest in time, they can buy low and sell high, thus reducing the risk of losses brought by the market.
The third factor affecting the bond yield: the interest rate factor.
The interest rate fluctuates due to the supply and demand of funds, which may be higher or lower than the fixed principal and interest of bonds, and the interest rate directly affects the return of bonds. If the market interest rate is higher than the bond interest rate, the bond market price will fall; On the contrary, it will rise. Therefore, the stock network reminds investors to always pay attention to the changes in interest rates in order to make better investments.
Factor four: inflation.
When investors invest in bonds, they must also consider the funds that can be recovered when the bonds expire, that is, the investment income. In addition to bond interest, there must be enough income to make up for the losses caused by inflation.
The fifth factor that affects bond returns: bond investment cost.
The investment cost of bonds is divided into buying cost, transaction cost and tax cost, and tax cost is an important factor affecting bond returns. If the investor's investment cost is higher, the bond investment income will be lower. Therefore, investors must consider the bond investment cost factor when investing in bonds.