The fixed investment of the fund is to buy the fund on a regular basis. The advantages of the fund's fixed investment are: 1, which is convenient and worry-free; 2. You don't need to choose the time and get the average income; 3. You don't need to stop the investment.
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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.
The difference between money and bonds
The main difference between money funds and bond funds 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.
Two factors affecting the performance of bond funds,
First, interest rate risk, that is, the sensitivity of the bonds invested to interest rate changes (also known as duration);
The second is 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.