First, let's look at what bonds are.

Bonds are vouchers for borrowing money, which is popularly called "IOUs".

For example, if Xiao Wang lends you 30,000 yuan, you give Xiao Wang an iou and agree on a certain interest.

Paying back money after one year is a debt relationship between individuals.

And if the country borrows money from you and gives you loan certificates, it can be called national debt.

Because the country's credit is the best, the risk you take is very small, so the income you can get will not be too high.

However, the IOU between you and Xiao can only be used between you, not between individuals, enterprises and banks.

Treasury bonds, corporate bonds, financial bonds, etc. Because they are standard forms required by the state, they are issued after examination and approval by various departments of the state and can be circulated in the market.

For example, it is acceptable for banks to repay debts with bonds of China Development Bank.

Therefore, the definition of bonds is that when the government, financial institutions, industrial and commercial enterprises and other institutions directly borrow money from the society to raise funds, they issue them to investors and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions.

At the same time, borrowers include the central government, local governments, financial institutions, listed companies and enterprises. Different borrowers have different interest rates because of their different credit ratings.

There are also long-term bonds, medium-term notes and so on. As for the basic terminology elements of bonds, you can refer to this bond trading system.

So, how should bond funds be understood?

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. 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.

Bonds provide investors with a fixed return and repay the principal at maturity, and the risk is lower than that of stocks. Bond funds are an indispensable part of asset allocation because of their relatively low risk and relatively stable income fluctuation.

Two. Classification of bond funds

According to the different investment direction, domestic bond funds can be divided into three categories:

1. Standard bond funds are pure bond funds (which can be subdivided into short-term bond funds and credit bond funds).

2. Ordinary bond funds (which can be subdivided into primary debt base and secondary debt base)

3. Other strategic bond funds (such as convertible bond funds)

Next, I will talk about pure bond funds, mixed bond funds and convertible bond funds one by one.

Next, I will talk about pure bond funds, mixed bond funds and convertible bond funds one by one.

1, pure debt fund

Pure bond funds only invest in the bond market, do not participate in new shares and do not invest in stocks. Among the four types of bond funds, the risk is the smallest.

This kind of debt base is easy to identify, and the word "pure debt" is generally used.

For example, Guangfa Pure Debt A(270048).

According to the length of the average term of investment bonds, it can be divided into:

Medium and long-term bond funds;

Short-term bond fund.

However, whatever it is, it only invests in bonds.

In the past, most A-shares were medium-and long-term bond funds, while short-term bond funds were actually few in number.