Funds are indirect investment products. When investors buy funds, they actually entrust fund managers to invest in these funds. For example, if an investor buys a stock fund, the specific stock to be invested is decided and managed by the fund manager.
This is also one of the main differences between funds and stocks and bonds. The latter two are direct investment. Which stock or bond to buy and how much to buy are up to investors.
Extended data
The rise and fall of the net value of bond funds is related to other factors such as market interest rate, stocks and bonds.
The rise and fall of bond funds is inversely proportional to the market interest rate. When the market interest rate rises, its net value may fall. When the market interest rate falls, its net value may rise.
Because more than 80% of the assets of bond funds are invested in bonds and a small part is invested in the stock market, the rise and fall of bond funds will also be affected by stocks and bonds to some extent.
When the stocks invested by bond funds fall due to bad market conditions or other bad news, it will also lead to the decline of bond funds to a certain extent; On the contrary, because of some good news, the stock price rose sharply, which indirectly led to the rise of bond funds.
Because its main funds are invested in bonds, the yield of bonds will also affect the rise and fall of bond funds to some extent.
Risk warning: China's fund operation time is short, which can't reflect all stages of the development of the stock market and bond market, and the past performance of the fund can't predict its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee for the performance of the new fund. Before buying a fund, investors should carefully read the fund contract, prospectus and other fund legal documents, and invest in the fund cautiously.