Funds can be divided into broad sense and narrow sense. Broadly speaking, a fund refers to a certain amount of funds set up for a certain purpose. Fund is a narrow concept, which refers to funds with specific purposes and uses. Because the investors of government agencies and institutions do not require investment returns and investment recovery, but require funds to be used for designated purposes in accordance with the law or the wishes of the investors, funds are formed.

Low risk, low return. Due to the stable income and low risk of bonds, compared with equity funds, bond funds have low risk but low income. 2, the cost is low. Because bond investment management is not as complicated as stock investment management, the management fee of bond funds is relatively low. 3. Stable income. Investment bonds have regular interest returns and promise to repay the principal and interest at maturity, so the income of bond funds is relatively stable. 4. Pay attention to the current income. Bond funds mainly pursue relatively fixed income in the current period, and lack appreciation potential compared with equity funds, so they are more suitable for investors who are unwilling to take too many risks and seek stable income in the current period.