Because the investment object of bond funds-bonds have stable returns and low risks, bond funds have low risks, but at the same time, because bonds are fixed-income products, bond funds have low risks but low returns compared with stock funds.
2. Low cost
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 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. [ 1]