Bond funds are funds that mainly invest in bonds, and obtain income by buying bonds such as government bonds and corporate bonds in the market. The holding date of the bond includes the weekend, and the coupon rate of the bond is fixed, so there is also income on the weekend, which is brought by the coupon interest.
It is worth noting that when buying a fund on T-day, the share will not be confirmed until T+ 1, so if investors buy a fund after 15 before the holiday, the share will not be confirmed until after the holiday, so there is no income during this period.
In the fund market, there are many bond funds that can be purchased and redeemed flexibly, and there are also many bond funds with fixed term. For a fund with a fixed term, investors cannot redeem it without maturity.
The risk faced by bond funds is very small, so investors want to pursue higher returns and choose active bond funds; If you want to pursue stable income, choose passive bond funds.
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.
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.
According to the classification standard of China Securities Regulatory Commission, bond funds refer to funds with more than 80% of fund assets 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 main difference between money funds and bond funds lies in the different investment objects.
Money fund is an open-end fund, which invests in the money market, mainly investing in bonds, central bank bills, repurchase and other short-term wealth management products with high security; Bond funds are funds that invest in bonds, mainly treasury bonds, financial bonds and corporate bonds.
The income of the money fund is only higher than the interest rate of bank time deposits, but there is no interest tax. You can redeem it at any time, and generally you will receive the funds the next day after applying for redemption. Therefore, the money fund is very suitable for units and individuals who pursue low risk, high liquidity and stable income. These two products have their own advantages.