Funds and bonds are also closely linked. Bond is a kind of debt securities, and each bond represents the borrower's debt commitment to the bondholder. The fund can choose to invest in the bond market and spread its investment funds among many different types of bonds. The investment portfolio of a fund usually includes government bonds and corporate bonds. In order to pursue high returns and low risks, fund managers will choose bond varieties and investment ratios according to market conditions.
The third paragraph: the difference between funds and stocks and bonds.
Although funds, stocks and bonds are all investment varieties, there are some significant differences between them. First of all, compared with stocks and bonds, funds are a collective investment tool, and investors' funds will be pooled and invested by fund managers. Secondly, the fund has dividend-paying stocks and interest income, and stocks and bonds provide dividend-paying and interest income respectively. Finally, investors in investment funds will not directly own the fund assets, but become the holders of asset shares and get the distribution of fund investment income.