The so-called bond fund is a fund mainly investing in bonds, which stipulates that more than 80% of fund assets are invested in bonds. In fact, choosing bond funds is not as complicated as stock funds and hybrid funds, and only the following four steps are needed.
The first step is to choose a good fund company. Compared with hybrid funds and equity funds, fund companies have a greater impact on bond funds. Fund companies with banking background can get lower-cost bonds and have more resources in their hands. In addition, fund companies with large brokerage backgrounds will also have advantages.
The second step, after locking the fund company, choose the type of bond fund.
Generally speaking, according to the risk of bond funds from small to large, you can sort them like this:
The first category is pure debt funds, as the name implies, which only invest in the bond market and have the least risk among bond funds.
The second category is a bond fund, which mainly invests in bonds and can also participate in new shares, and the risk will be greater.
The third category is secondary bond funds, which will invest in a small amount of stocks in addition to bonds. Because this kind of bond fund is easily influenced by the stock market, the risk is higher than that of pure debt fund and primary debt base.
The last one is the convertible bond fund, which mainly invests in convertible bonds. Because it has the characteristics of both bonds and stocks, it has the highest risk compared with the first three.
The third step is to lock in the types of bond funds, and then you can choose the one that suits you best. Looking at performance is a classic routine to judge the quality of bond funds.
Finally, you can choose a good financial platform to buy bond funds.