bond fund, also known as bond fund, refers to a fund that specializes in investing in bonds. By pooling the funds of many investors, it makes portfolio investments in bonds and seeks 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.

In China, bond funds mainly invest in government bonds, financial bonds and corporate bonds. Usually, bonds provide investors with fixed returns and repayment of 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.

Bond funds are a good way for individual investors to indirectly participate in the inter-bank bond market. China's bond market is divided into inter-bank bond market and exchange bond market, and there are significant differences in trading methods and participants between the two markets. Participants in the inter-bank bond market reach deals with their selected counterparties one by one by way of inquiry, including commercial banks, rural credit cooperatives, insurance companies, securities companies, bond funds and other financial institutions, while individual investors cannot participate. Like stock trading, the bond trading conducted by the exchange is made by many investors * * * and matched by computer, and individual investors can also participate. With the rapid expansion of the inter-bank bond market, its share and influence in China's bond market are constantly expanding. As far as the current situation of China's bond market is concerned, the inter-bank bond market has greater advantages than the exchange bond market in terms of bond trading types and liquidity. The transaction volume of the inter-bank bond market accounts for more than 9% of the total bond transactions and has become the main place for bond trading.

first of all, you should know your risk tolerance.

Do a detailed risk assessment, evaluate your tolerance for investment risks, and choose the right bond fund type.

the second is the profitability of the debt base.

The yield of bond funds is not fixed, but will change with the change of the market.

The standard deviation of the fund reflects the volatility of the bond fund. The smaller the standard deviation, the more stable the fund is.

then look at the past performance of the fund.

understand the fund's profit and loss and changes in recent years, its past performance level, and evaluate whether it meets our requirements. (at least look at the performance of the past three years)

Finally, we should care about the strength of fund managers.

This is a very important link. Many bond funds are actively managed products, which is a test for fund managers' investment and research ability. Moreover, some bond funds can invest in the stock market, and the stock assets are often accompanied by greater risks.

investors are advised to choose fund managers who have large assets under management, have invested for more than five years and have stable product performance for a long time. Therefore, choosing a fund manager with high investment level is helpful to get better returns from stock assets.