Bond funds are an important part of the fund market. For many investors, bond funds are the preferred investment method, so how do bond funds make money? Let's talk about it with us today.

how did bond funds come into being?

1. 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 investment in bonds and seeks stable expected returns.

2. More than 8% of the investor funds raised by the fund manager are used to invest in bond products. The investment targets of these bond products, including bond funds, are mainly government bonds, financial bonds and corporate bonds.

3. Fund managers allocate funds and portfolio, and adjust positions according to market changes.

4. when investing in bonds, bond funds will also get corresponding expected returns.

how do bond funds make money?

1. 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 expected returns and lower risk.

2. Investors will invest their funds in the corresponding funds, and the fund manager will raise funds to invest in the bond market in the name of the institution according to his own bond portfolio and suitable positions, and obtain the expected returns, which will be expressed in the form of net fund value.

3. The net fund value shows the net value after deducting the custody fee and management fee. According to the change of the net fund value, the investor's profit or loss is determined, and the expected return of the capital investment ratio is given to the investor.

That's enough about how bond funds make money. I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.