At present, there is no good channel for domestic investment in American funds, and more than 80% of fund assets are 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 rise and fall of extended information bond prices is inversely proportional to the rise and fall of interest rates. When interest rates rise, bond prices fall. It is necessary to know the change of bond price, so as to know how sensitive the net asset value of bond funds is to the change of interest rate, and the duration can be used as an indicator to measure it.

The maturity of a bond depends on three factors: the maturity date, the cash flow of principal and interest expenses, and the yield to maturity. Duration is calculated in years, but it is different from the term of bonds. With this indicator, you can know how much the fund under investigation has earned or lost because of the change of interest rate.

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